Bitcoin cash price declined sharply after trading above the $230 resistance against the US Dollar. BCH/USD broke the $200 and $175 support levels, and it could even test $120.
Key Talking Points
Bitcoin cash price failed to clear the $240 resistance and declined sharply against the US Dollar.
BCH broke a major triangle support at $190 on the 4-hours chart (data feed from Bitstamp).
The price is currently trading with a bearish angle and it could decline further below $150.
Bitcoin Cash Price Analysis
Recently, there was a solid upward move above the $120 and $1801 resistance levels in Bitcoin cash price against the US dollar. BCH even traded above the $200 and $220 resistance levels. Later, there was an increase in selling pressure in the market, resulting in a sharp decline in Bitcoin, ripple, Ethereum, litecoin and EOS.
Looking at the chart, there was a top formed near the $237 level and later the price started consolidating in a range above the $200 level. The price declined below the 23.6% Fibonacci retracement level of the last wave from the $84 low to $237 high.
Finally, sellers had the upper hand and they pushed the price below the $200 and $180 support levels. Moreover, the price broke a major triangle support at $190 on the same chart.
The price traded below the $160 level and it seems like it could soon test the $144 level and the 61.8% Fibonacci retracement level of the last wave from the $84 low to $237 high. If there are more losses, the price may test the $120 support.
The mentioned $120 support is importance since it is near the 100 simple moving average (4-hour). On the upside, the first resistance for buyers is near $175 and $180, above which the price may test the $200 resistance zone.
Overall, Bitcoin cash clearly moved into a bearish zone below the $200 level and it could accelerate losses below the $150 and $140 levels.
The market data is provided by TradingView.