- Bitcoin Cash is one of the biggest losers on Wednesday.
- The recovery may be limited by $256 handle.
Bitcoin Cash (BCH) is in the free fall since September 20. The coin has lost over $100, or nearly 31% of its value. The bearish pressure increased significantly on Tuesday amid global collapse on the cryptocurrency markets. At the time of writing, BCH/USD is changing hands at $225.70, off the Asian low registered at $220.00. Bitcoin Cash is the fourth largest digital asset with the current market value of $5.2 billion. The coin is down over 6% since the beginning of the day.
BCH/USD, the technical picture
Looking technically, BCH/USD recovery target is created by the middle line of one-hour Bollinger Band at $256.00. We will need to see a sustainable move above this handle to mittigate an initial bearish pressure and allow for an extended recovery towards SMA50 (Simple Moving Average) one-hour at $282.00 followed by psychological $300.00. This barrier is strengthened by SMA100 one-hour.
On the downside, a sustainable move below $220.00 will open up the way towards $210.00 and $208.50 ( the lower line of one-hour Bollinger Band). Once it is out of the way, the sell-off is likely to gain traction with the next focus on $200.00.
BCH/USD, one-hour chart
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