Bitcoin Cash price analysis: bulls need to defend $200.00 level
18:04, 1 July 2020
Bitcoin Cash came under heavy selling pressure last week, as the fifth-largest cryptocurrency by market capitalisation slipped towards the bottom of its trading range.
Bitcoin Cash price analysis shows that bulls need to defend the $200.00 level to avoid a potential decline towards the $120.00 level.
Bitcoin Cash medium-term price trend
Bitcoin Cash tested towards the bottom of its trading range against the US dollar last week, and also crashed to a new all-time low against Bitcoin.
Bears have so far been unable to break under the established medium-term price range, around the $200.00 level.
Bitcoin Cash technical analysis shows that if sellers fail to breach the $200.00 level, then a strong recovery may start.
The BCH/USD pair may target back towards the top of its trading trange, around the $280.00 level, if a meaningful price floor was formed last week.
In the interim, the BCH/USD pair’s 200-day moving average offers the strongest form of medium-term resistance, around the $250.00 resistance level.
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Bitcoin Cash short-term price trend
Bitcoin Cash technical analysis shows that the cryptocurrency has a bearish short-term bias while the price trades below the $240.00 level.
The four-hour time frame shows that a bullish reversal pattern will take place if price reaches the $245.00 level.
A strong technical bounce from the $205.00 level is currently underway. A bullish inverted head and shoulders pattern will form if the recovery reaches the $245.00 level.
According to the size of the potential inverted head and shoulders pattern, the BCH/USD pair could recover back towards the $280.00 level.
Bitcoin Cash technical summary
Bitcoin Cash technical analysis indicates a bullish counter-rally may start to take place if price reaches the $245.00 level. The $280.00 level is seen as a possible bullish target.