Cashcoin Bitcoin (BCH) near make-or-break levels

Bitcoin's cash price started a downward correction after selling over $ 235 against the US dollar. BCH / USD traded below $ 200 and is currently consolidating close to $ 150.

Key points of conversation

• Bitcoin's cash price has declined recently and has broken $ 200 and $ 175 against the US dollar.
• BCH is forming a breakout model with resistance to $ 162 on the 4-hour chart (Bitstamp data feed).
• The price may soon make the next move above $ 165 or below $ 140 in the short term.

Bitcoin cash price analysis

After a monster rally above the $ 200 level, the bitcoin's cash price found sellers against the US dollar. BCH tested the resistance zone $ 235-240 and then began a downward correction. On the other hand, bitcoin, ripple, Ethereum, litecoin and EOS remained well supported.

Looking at the chart, the price started a sharp decline from the $ 237 swing. He broke the $ 200 and $ 175 support levels to move into a bearish zone. There was also a break below the $ 170 level and the simple moving average of 100 (4 hours).

In addition, the price fell below the Fibonacci retracement level by 50% from the low of $ 84 to $ 237. Subsequently, the decline was protected by the support zone $ 140-142.

More importantly, the Fibonacci retracement level of 61.8% of the move up from the low of $ 84 to $ 237 acted as support. The price is consolidating above the support levels $ 142 and $ 150.

There appears to be a break pattern formed with resistance at $ 162 on the 4-hour chart. A break above the bearish trend line and $ 165 could push the price towards $ 175 and $ 190 in the short term.

On the downside, a break below the $ 150 and $ 142 support levels may clarify the path for further bitcoin cash price reductions in the short term. The next major support for BCH below $ 142 is $ 120. It represents the Fibonacci retracement level of 76.4% of the move to the top and the last swing zone. Therefore, traders could wait for the next break to take the next move above $ 165 or under $ 142.

Market data is provided by TradingView.