The cash price of Bitcoin declined sharply after exceeding the resistance of $ 230 against the US dollar. BCH / USD broke support levels $ 200 and $ 175, and could even test $ 120.
Key points of conversation
- The cash price of the bitcoin failed to cancel the resistance of $ 240 and fell sharply against the US dollar.
- BCH broke an important triangle support for $ 190 on the 4-hour chart (Bitstamp data feed).
- The price is currently trading at a bearish angle and may fall further below $ 150.
Bitcoin cash price analysis
Recently, there was a strong upward push above the resistance levels of $ 120 and $ 1801 in the bitcoin cash price compared to the US dollar. BCH also exceeded the resistance levels of $ 200 and $ 220. Subsequently, 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 format close to the $ 237 level and thereafter the price started to consolidate in a range above the $ 200 level. The price fell below the Fibonacci retracement level of the 23.6% of the last wave, from the low of $ 84 to $ 237 high.
Finally, the sellers took over and pushed the price below the $ 200 and $ 180 support. Furthermore, the price broke an important triangular support for $ 190 on the same chart.
The price is trading below the $ 160 level and it looks like it could soon test the $ 144 level and the Fibonacci retracement level of 61.8% of the last wave from the low of $ 84 to $ 237 in height. If there are more losses, the price could test the support of $ 120.
Support of $ 120 quoted is important since it is close to the simple moving average of 100 (4 hours). On the upside, the first resistance for buyers is close to $ 175 and $ 180, beyond which the price can test the $ 200 resistance zone.
Overall, bitcoin cash has clearly moved into a downward zone below the $ 200 level and could accelerate losses below $ 150 and $ 140.
Market data is provided by TradingView.