A key inflection zone could boost the price of Bitcoin Cash again since the asset corrected lower from the $270 resistance zone. BCH seems to be preparing for the next crucial break above the $260 or to the $230 support as we are reading further in the Bitcoin Cash news.
The Bitcoin cash price is trading in a range above the $250 support zone against the US dollar so the price has to break the $260 resistance zone and to start a fresh increase in the near term. There is also a key inflection zone forming with the resistance close to the $25 on the 4-hour charts of the pair so BCH could rally sharply above $260 or it can start a fresh decline below $250.
After the strong increase above $250, the Bitcoin Cash price established near the $268 level. The price formed a new monthly high close to the $268 and started a downside correction too. After the break below the $265 support zone and the price spike below it, there was a new low forming close to the $246 level so the price is now trading above the 100 simple moving averages. The last swing high was close to the $263 level and the recent low got to the $246. Bitcoin Cash is now trading in a range similar to Bitcoin as it tested the 50% Fib retracement level of the recent decline from the $263 high to the $246 low.
— BCH Tribe (@BitcoinTribe) June 6, 2020
There is a key contracting triangle forming with the resistance close to the $255 level on the charts. The triangle resistance is close to the 61% Fib retracement level of the recent decline from the $263 high to the $246 low. The upside break above the triangle resistance and the $260 level could open the doors for another increase. The next key hurdle is close to the $268 and $270 above which the bulls could aim towards the $300 in the near term. If the BCH price breaks the triangle, it could struggle to stay above the $246 swing low while the next major support is close to the $244 level.
Any further losses could start a steady decline to the $230 support so the price could either rally above the $260 or start another fresh decline below the $250. The MACD for BCH/USD is struggling to gain pace in the bullish zone. The RSI for the pair sits below the 50 levels.
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