Bitcoin cash price is dipping below the $120 zone against the US dollar, similar to Bitcoin. BCH/USD could extend losses if there is a close below $110.
Bitcoin cash price started a fresh dip below the $120 zone against the US Dollar. The price is now trading below the $120 zone, and the 55 simple moving average (4 hours).
A short-term ascending channel is forming with support at $112.80 on the BCH/USD pair 4-hour chart, according to Coinbase. The pair could continue to move lower if it sustains below the $118 resistance zone.
Bitcoin Cash Price Analysis
Bitcoin cash price struggled to gain pace for a move above the $124 resistance level. BCH formed a high near $123.94 and started a new decline.
There was a clear move below the $122.00 and $120.00 support levels. The pair even dipped below the $115 support. It tested the $110 level. A low is formed near $110.16 and the price is now consolidating losses. It is now trading near the 23.6% Fib retracement level of the recent decline from the $123.94 high to $110.16 low.
Furthermore, it is trading below the $120 area and the 55 SMA (4 hours). Immediate resistance is near the $117.00 level and the 55 simple moving average (4 hours).
The 50% Fibonacci retracement level of the recent drop from the $123.94 high to the $110.16 low is also near $117. The next key resistance is nearly $120. More gains above $117 and $120 could set the pace for a move toward the $125 level.
If there is a move above the $125 resistance, the price could rally toward the $132 zone. Otherwise, the price could continue below $110. Immediate support on the downside is near the $108 zone. The next major support is near the $100 level, below which the bears could target $92.
Bitcoin cash price is now trading below the $118 zone and the 55 simple moving average (4 hours). Overall, the price could continue to fall if it sustains below the $118 resistance zone.
Technical Indicators
The 4-hour MACD for BCH/USD is picking up pace in the bearish zone, while the 4-hour RSI (Relative Strength Index) is below the 50 level.
The key support levels are $110 and $108, while the key resistance levels are $118 and $120.
Bitcoin Predictions
It is important to note that this month, the price of Bitcoin is locked in a price range that fluctuates and moves between $27,000 to $31,000.
Jacobo Maximiliano, a Bitget analyst, shared an analysis with Cointelegraph en Español, where he historically shows what happened in May each year, and considers, through technical analysis, where the market could go.
Of the 11 years that go from 2013 to 2023, May ended in red in 6 years. On the other hand, in 5 of those 11 years it ended in green, that is, in positive returns. However, the last 3 years have been very high for BTC in terms of performance.
Jacob said some reasons could be that, in May, the summer vacation period in many countries starts, which could lead investors to reduce their activity in financial markets. Additionally, this month has been associated with historical events such as the 2008 financial crisis, as well as the 2010 US stock market crash.
By Audy Castaneda
