Bitcoin cash price analysis: $350.00 key weekly level
09:27, 25 February 2020
Bitcoin Cash has looked increasingly weak over recent days, as the price action surrounding the cryptocurrency is starting to show a lack of buying interest above the $400.00 level.
Bitcoin Cash price analysis shows that the cryptocurrency could fall towards the $270.00 level if the $350.00 support level is breached this week.
Bitcoin Cash medium-term price trend
Bitcoin Cash has been struggling to bounce over recent days, following the huge technical rejection from just below the $500.00 level earlier this month.
The BCH/USD pair has so far found support from the $350.00 level, although the cryptocurrency still remains vulnerable to further losses.
Bitcoin Cash technical analysis shows that the cryptocurrency could fall towards the $270.00 if sellers force price below the pivotal $350.00 level.
Drawing a Fibonacci retracement from the current 2020 high to the December low, the 50 percent retracement of this sequence, at $330.00.
More conservative traders may wait for the BCH/USD pair to reach the 61.8% Fibonacci retracement level, around the $290.00 area.
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Bitcoin Cash short-term price trend
Bitcoin Cash technical analysis over the short-term shows that the cryptocurrency is vulnerable to losses below the $360.00 level.
Following last week’s decline, the four-hour time frame shows that a large head-and-shoulders pattern has started to take shape.
The size of the pattern indicates that a decline towards the $220.00 level may occur if the $360.00 level is breached with conviction.
Such a large decline in BCH/USD is certainly within the realm of possibility, given that the cryptocurrency is prone to large directional moves once a breakout occurs.
With this in mind, watch out for an explosive move in the BCH/USD pair over the coming days if the $290.00 support level is breached.
Bitcoin Cash technical summary
Bitcoin Cash technical analysis indicates that the cryptocurrency could fall towards either the $290.00 or the $220.00 support levels before staging a major upside recovery.