Bitcoin Cash price analysis: $206.00 support level must hold

Bitcoin Cash price analysis shows that a breakout below the $206.00 support level would be extremely negative. A bearish head and shoulders pattern is currently valid on the lower time frames.

0'>Bitcoin Cash has come under heavy early-week selling pressure after the sudden drop in oil prices prompted Bitcoin and other cryptocurrencies to turn sharply lower.

Bitcoin Cash price analysis shows that buyers must defend the $206.00 support level this week to encourage more medium-term dip-buying.

Bitcoin Cash medium-term price trend

Bitcoin Cash has been reversing sharply from just below the $250.00 resistance over recent days, with the BCH/USD pair so far finding support from the $215.00 level.

Bitcoin Cash technical analysis shows that bulls need to hold price above the $206.00 level this week to form an important higher low on the weekly chart.

If the BCH/USD pair manages to hold this key support area, medium-term dip-buyers may start to move back into the popular cryptocurrency.

The daily time frame shows that a rally back towards the $250.00 level may occur if the $206.00 support holds firm this week.

It is noteworthy that a drop below the $206.00 level could cause the BCH/USD pair to test back towards critical medium-term support, around the $180.00 level.

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Bitcoin Cash short-term price trend

0'>Bitcoin Cash technical analysis shows that the cryptocurrency is bearish over the short term while price trades below the $228.00 level.

The four-hour time frame currently shows that a large inverted head-and-shoulders pattern has formed, following the recent rally towards the $250.00 level.

The size of the pattern indicates that a bullish breakout above the $250.00 resistance level could see the BCH/USD pair rallying towards the $290.00 area.

With this in mind, it is imperative that bulls defend the $206.00 level this week so that the pattern is not invalidated.

Bitcoin Cash technical summary

Bitcoin Cash technical analysis highlights that bulls need to defend the $206.00 level this week. If key support holds the BCH/USD pair could rally towards the $250.00 and possibly even the $290.00 level.

Bitcoin Cash to US Dollar
Daily change
111.2
Low: 109.85
High: 112.4
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