Bitcoin cash price corrected lower from the $270 resistance zone. BCH seems to be preparing for the next crucial break either above $260 or towards the $230 support.

After a strong increase above $250, bitcoin cash price found sellers near the $268 level. BCH price formed a new monthly high near $268 and recently started a downside correction.

There was a break below the $265 support zone and the price even spiked below $250. A low is formed near the $246 level and the price is currently well above the 100 simple moving average (4-hours).

The last swing high was near $263 and the recent low was near $246. Bitcoin cash is currently trading in a range (similar to bitcoin) above the $250 support. It tested the 50% Fib retracement level of the recent decline from the $263 high to $246 low.

More importantly, there is a key contracting triangle forming with resistance near $255 on the 4-hours chart of the BCH/USD pair. The triangle resistance is close to the 61.8% Fib retracement level of the recent decline from the $263 high to $246 low.

Therefore, an upside break above the triangle resistance and the $260 level could open the doors for a fresh increase. The next key hurdle is near the $268 and $270 levels, above which the bulls are likely to aim a test of the $300 handle in the near term.

If bitcoin cash price breaks the triangle support, it could even struggle to stay above the $246 swing low. The next major support is near the $244 level or the 100 simple moving average (4-hours).

Any further losses could start a steady decline towards the $230 support. Overall, the price could either rally sharply above $260 or start a fresh decline below $250.

Technical indicators

Hourly MACD The MACD for BCH/USD is struggling to gain pace in the bullish zone.

Hourly RSI (Relative Strength Index) The RSI for BCH/USD is currently just below the 50 level.

Key Support Levels $250 and $246.

Key Resistance Levels $260 and $270.

Here is the original post:

Bitcoin Cash Near Key Inflection Zone: Heres Why BCH Could Rally Again | NewsBTC - newsBTC