Key Takeaways:
- Bitcoin Cash’s price extended its rally toward $325 before it corrected lower.
- BCH/USD faces a key bearish trend line with resistance near $280 on the 4-hour chart.
- The price could start a fresh rally if it clears $280 and $300.
NEW DELHI (CoinChapter.com) — Bitcoin Cash price is correcting gains from $328 and testing important support. BCH/USD could correct further if it drops below $270.
Bitcoin Cash Price Holds Support
The last Bitcoin Cash price analysis showed a strong increase above the $150 resistance zone. The BCH/USD pair extended its rally above the $250 resistance and settled well above the 50 simple moving average (blue, 4-hour).
The price surged above the $300 barrier, outperforming Bitcoin and Ethereum. It traded to a new multi-week high at $328.95 before the bears appeared. Recently, there was a downside correction below the $300 level. The price traded below a connecting bullish trend line with support at $280 on the 4-hour chart.
The bulls are now protecting major support at $270 and the 50 simple moving average (blue, 4-hour). BCH is also testing the 23.6% Fib retracement level of the upward move from the $90.90 swing low to the $328.95 high.
If Bitcoin Cash remains stable above the $270 support, it could start another rally. Immediate resistance is near $280. There is also a key bearish trend line with resistance near $280.
The next major resistance is near the $300 zone, above which the price could accelerate higher. The next key resistance is near $325, above which the price could rise toward $340. Any more gains might even push the price toward the $350 resistance zone.
More Downsides?
Conversely, Bitcoin Cash’s price might continue to rise below the $270 support. Immediate support is near the $260 level. The first major support is near $238, below which the price could test $210 or the 50% Fib retracement level of the upward move from the $90.90 swing low to the $328.95 high.
Overall, Bitcoin Cash price is holding an important support near $270 and 100 SMA. If BCH clears the $280 and $300 resistance levels, it could revisit the $325 resistance or even $340 in the coming sessions. Conversely, the price might correct lower and test the $210 support soon.
