Bitcoin Cash (BCH) is showing positive signs above the $180 support level against the US Dollar. The cryptocurrency is aiming for a fresh increase towards the $205 and $220 levels. Despite a decline in the past few days, BCH has remained relatively stable compared to Bitcoin and Ethereum.
There was a break above a major bearish trend line with resistance near $189 on the 4-hour chart of the BCH/USD pair. This breakout suggests that BCH may accelerate higher if it clears the $197 and $200 levels. The price is currently trading below $200 and the 100 simple moving average (4 hours).
In terms of resistance, immediate levels to watch are near $197 and the 100 simple moving average (4 hours). The next major resistance is near $205 or the 50% Fibonacci retracement level of the downward move from the $238 swing high to the $180 low.
If BCH fails to clear the $205 resistance, it could start a fresh decline. Initial support on the downside is near the $185 level, followed by the key $180 support level. Bulls are likely to appear at this level. However, if the price fails to stay above $180, it could test the $168 support. Further losses may lead the price towards the $150 zone in the near term.
Technical indicators show that the MACD for BCH/USD is gaining pace in the bullish zone on the 4-hour chart. The RSI (Relative Strength Index) is currently above the 50 level.
In conclusion, Bitcoin Cash price is holding the key $180 support level and aims for a fresh increase towards the $205 and $220 levels. However, it must first clear the $197 and $200 resistance levels to gain momentum. Failure to do so could result in a decline towards the $168 and $150 support levels.
Source: BCH/USD on TradingView.com
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