- BCH/USD consolidates the sharp sell-off to $277.
- No. 5 coin remains exposed to downside risks in the near-term.
- Hourly RSI inches lower below the midline, with bearish HMAs crossover.
After a volatile session witnessed on Friday, Bitcoin Cash (BCH/USD) is consolidating in a $10 narrow range, as the bears gear up for the next push lower. The No. 5 coin rallied as high as $326 on Friday before seeing a sharp sell-off to $277, although managed to settle above the $300 level. The digital asset has stalled its recovery momentum in a quiet Saturday trading so far, keeping its range around $303. Despite the pullback, the spot sheds over 5.50% over the last 24 hours, enjoying a market capitalization of $5.60 billion.
BCH/USD: Hourly chart
As observed in the hourly, the coin continues to range in a broadening pattern since last Sunday, with the downside bias more compelling after the price faced rejection on several occasions at the upper trendline boundary of the pattern.
More so, the 21-hourly Simple Moving Average (HMA) has pierced the 50-HMA from above, suggesting that the bears are likely to retain control in the near-term.
Therefore, a break below the powerful support at $299 is critical for further declines. That level is the confluence of the horizontal 100 and 200-HMAs.
Entry for the sellers below the latter will open floors towards lower trendline boundary at $277, which is coincides with Friday’s low. The hourly Relative Strength Index (RSI) points south below the midline, suggesting more weakness ahead.