Bitcoin Cash Price Prediction: BCH/USD fails to break free from the range, reverses gains
- BCH/USD has lost over 1% of its value in a matter of minutes.
- The recovery is capped by $225.60, while the critical support comes at $220.00
Bitcoin Cash (BCH) is the fifth largest digital asset with the current market value of $4.1 billion and an average daily trading volume of $1.11 billion. The coin hit the intraday high at $225.62 during early Asian hours and retreated to $223.16 by the time of writing. BCH lost over 1% in a matter of minutes as a failure to settle above the local resistance triggered stop orders.
BCH/USD: Technical picture
On the intraday chart, the local support is created by a combination of 1-jour SMA50 and SMA100 at $222.50. Once it is broken, the sell-off may be extended towards the intraday low of $220.79, reinforced by the lower line of the 1-hour Bollinger Band. The next support is created by the psychological barrier 220.00. Once it is out of the way, the downside is likely to gain traction with the next focus on $204.62 (the lowest level of June 27).
BCH/USD 1-hour chart
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On the upside, BCH/USD recovery is capped by the above-said intraday high of $225.62. A sustainable move above this area will allow for an extended recovery towards 1-hour SMA200 at $228.50, followed by $230.00. The next resistance is created by $234.00 that stopped the upside momentum in the end of the previous week. The ultimate technical resistance comes at $238.00 (daily SMA100) and $239.00 (daily SMA50).
BCH/USD daily chart
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Author
Tanya Abrosimova
Independent Analyst
