- Bitcoin cash price is gradually rising after settling above $225 support
- BCH/USD pair is consolidating gains below $240 at the moment and 55 SMA
- A key contracting triangle is shaping up in the BCH/USD price action
- BCH price could surge past $240 or sink below $225
Bitcoin cash price action is indicating encouraging developments. The cryptocurrency is currently trading beyond the $225 key support against Tether. So long as the BCH/USD pair trades beyond this key support, BCH price has a chance of rallying past $240.
The BCH price action is continuing with a difficult 2020 as it struggles to trade above $240 price level. The BCH/USD pair has now declined by about 32.2 percent since hitting a high of $338 early in August. Besides, the pair has also dropped significantly against Bitcoin.
The price of Bitcoin cash has been sluggishly appreciating against USDT since establishing a foundation past $210 level. The pair breached several vital barriers near the $220 and $225 resistance zones before settling in an affirmative area.
Bitcoin cash price daily chart
Furthermore, BCH price action settled above the $225 crucial support and the 55 simple moving average (4-hours). BCH price increased tempo after breaking past the $230 price level, however, buyers were unable to beat the $240 resistance. The BCH/USD pair formed a high near the $241 price level and the pair is consolidating the gains at the moment.
Notably, there was a remedial surge beneath the 23.6 percent Fibonacci retracement levels of the upside break from $217 swing lows to $241 swing highs. Regardless, BCH/USD appears to be creating a firm support base beyond the $225 and the 55 SMA (4 hours).
Additionally, there appears to be a vital contracting triangle shaping up with the defiance near the $235 price level of the BCH price action (4 hour daily chart). A contracting triangle only indicates the price-building energy. The support of the contracting triangle is near the 50 percent Fibonacci retracement level of the upside momentum from lows of $217 to $241 highs.
What to expect from BCH/USD pair?
If there is a bullish break beyond the contracting triangle resistance, the BCH/USD pair is likely to rise past the $240 resistance and the $241 swing highs. The subsequent resistance zone is near $250, from which the price of BCH can surge towards $258 if it can clear the $250 resistance.
On the contrary, if the BCH/USD pair sinks below the triangle’s support past the $225 key support zone, the subsequent support is at $210 and $200. Currently, the price of BCH is consolidating gains underneath the $240 defiance zone. The BCH/USD pair may either surge past the $240 resistance or sink to reach the $200 support.
The $200 price zone culminated the drop earlier this month, and has been serving as a tremendous technical support since April. As per the charts, if BCH price dives below $200, it could test $180 and even reach 2020s low of $130.