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    Bitcoin Cash price analysis: testing range six-month low

    By Nathan Batchelor

    13:25, 23 September 2020

    Bitcoin Cash price analysis

    Bitcoin Cash is on the verge of a technical breakdown, as the cryptocurrency probes towards critical monthly support.

    Bitcoin Cash price analysis shows that the cryptocurrency is at risk of moving into a much lower medium-term trading range.

    Bitcoin Cash medium-term price trend

    Bitcoin Cash is among the weakest of the top coins, with the BCH/USD pair close to turning into negative territory for the year.

    Bitcoin Cash technical analysis shows that the BCH/USD is at risk of falling towards the $120 support region.

    Bitcoin Cash has been trapped inside the $200 to $280 price range for the majority of the year. Any rallies above this key trading range have quickly been sold.

    According to the technical analysis, a bearish breakout under the $200 level could see the BCH/USD falling into a lower price range, between $110 and $150.

    It is noteworthy that while the $200 support barrier continues to hold, a counter rally towards the $280 area still remains possible.

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    US100

    21,442.30 Price
    +0.910% 1D Chg, %
    Long position overnight fee -0.0234%
    Short position overnight fee 0.0012%
    Overnight fee time 22:00 (UTC)
    Spread 1.8

    Gold

    2,630.53 Price
    +0.260% 1D Chg, %
    Long position overnight fee -0.0151%
    Short position overnight fee 0.0069%
    Overnight fee time 22:00 (UTC)
    Spread 0.30

    BTC/USD

    94,747.45 Price
    -0.360% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 22:00 (UTC)
    Spread 50.00

    XRP/USD

    2.16 Price
    -1.840% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 22:00 (UTC)
    Spread 0.01079

    Bitcoin Cash short-term price trend

    Bitcoin Cash technical analysis shows that the cryptocurrency has a short-term bearish bias while the price trades under the $240 resistance level.

    The four-hour time frame shows that a bearish head-and-shoulders pattern has recently formed, following the sharp downward reversal from the $240 area.

    According to the size of the bearish price pattern, Bitcoin Cash could decline by $35 if the $205 level is broken.

    If buyers are able to move the BCH/USD pair back above $240, then a counter-rally towards the $275 level may be forthcoming.

    Bitcoin Cash technical summary

    Bitcoin Cash technical analysis shows that the cryptocurrency is at serious risk of breaking the technically important $200 support level.

    Markets in this article

    BCH/USD
    Bitcoin Cash / USD
    438.70 USD
    -8.05 -1.800%

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    The difference between trading assets and CFDs
    The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
    You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
    CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
    CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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