Bitcoin Cash (BCH) price has been gradually rising since it broke above the $ 225 support. The BCH / USD pair is currently consolidating gains below $ 240 and below the 55 SMA. An important triangle formation is taking shape in the BCH / USD price action. In this case, the BCH price may exceed $ 240 or drop below $ 225.
The Bitcoin Cash price action points to encouraging developments. The cryptocurrency is currently trading beyond $ 225 key support against Tether. As long as the BCH / USD pair trades beyond this core support, there is a chance that the BCH price will exceed $ 240.
Continue the Tough Struggle
The BCH price action continues with a rough 2020 as it struggles to trade above the $ 240 price level. The BCH / USD pair has dropped approximately 32.2% since it hit $ 338 in early August. Also, the couple dropped significantly against Bitcoin.
The price of Bitcoin Cash has been appreciating slowly against USDT since the $ 210 level. The pair broke through several vital hurdles near the $ 220 and $ 225 resistance zones before settling in a positive zone.
What’s the situation on the daily chart?
Also, the BCH price action climbed above the key support of $ 225 and the 55 simple moving average (4 hours). The BCH price picked up its pace after crossing the $ 230 price level, but buyers failed to cross the $ 240 resistance. The BCH / USD pair surged closer to the $ 241 price level and the pair is currently consolidating gains.
Notably, there was a corrective rise below the breakout’s 23.6 percent Fibonacci retracement levels from the $ 217 lows to the $ 241 high. Regardless, BCH / USD seems to be creating a solid support base beyond the $ 225 and 55 SMA (4 hours).
Additionally, there seems to be a vital contract triangle shaped by the challenge of BCH price action near the $ 235 price level (4-hour daily chart). A contract triangle only shows price-forming energy. Support for the contraction triangle is near the 50 percent Fibonacci retracement level of momentum, rising from $ 217 to $ 241.
What Can We Expect From BCH / USD Pair?
If there is a bullish break beyond the narrowing triangle resistance, the BCH / USD pair could cross the $ 240 resistance and the $ 241 high. If the next resistance zone can clear the $ 250 resistance, the price of BCH is near the $ 250 level, where it could rise to $ 258.
Otherwise, if the BCH / USD pair breaks below the support of the triangle towards the key support zone of $ 225, the next support is $ 210 and $ 200. Currently, the price of BCH consolidates gains below the $ 240 challenge zone. The BCH / USD pair could break the $ 240 resistance or start a retreat that would reach the $ 200 support.
The $ 200 price zone ended in a decline earlier this month and has been serving as a tremendous technical support since April. According to the charts, if the BCH price drops below $ 200, it could test $ 180 and even drop to $ 130, the 2020s low.
BCH was trading at $ 235 at the time of writing.