- Bitcoin Cash bulls seem to be gaining traction as suggested by technical analysis.
- Attempts to conquer the 38.2% Fib level resistance have been thwarted by selling pressure.
Bitcoin Cash buyers are in deep sorrow as they nurse their wounds following the massive drops since Wednesday. The crypto is among the worst hit in the recent carnage across the board. However, major cryptocurrencies appear to have suffered the most with Bitcoin (BTC) testing $11,000, Ethereum (ETH) grinding closer to $260 and Ripple (XRP) testing $0.32.
Before the plunge Bitcoin Cash was hitting hard on the resistance at $420. Instead of breaking the stubborn hurdle, the price broke down initially taking a pit stop at the 61.8% Fib level taken between the last swing high of $420 and swing low of $312.69 slightly below $380. The selling pressure spilled into Thursday as the BCH extended the losses below key support levels at $380, $340 and $320.
Support was later established at the swing low before a reversal ensued. Attempts to conquer the 38.2% Fib level resistance have been thwarted by selling pressure leading to a correction to the current $341 market value. The 23.6% Fib level is currently the immediate support while $320, the swing low and $300 are the next support targets.
As far as technicals are concerned, Bitcoin bulls seem to be gaining traction. The Moving Average Convergence Divergence (MACD) is heading north towards the positive zone. Increasing divergence is likely to signal for more buy entries. The Relative Strength Index (RSI) is slopping gradually above the oversold suggesting rising buying pressure in the coming sessions.
BCH/USD 15-mins chart