- Bitcoin Cash struggles with the selling pressure at $280 after a shallow recovery from the dip to $269.51.
- The selling activities in the market are highlighted by the RSI within the oversold and the MACD under the midline.
Bitcoin Cash has continued to record lower highs following the rejection the bulls suffered at the beginning of August, close to $340. A descending trendline has remained intact for the second week in a row as well. Support at $300 seems to have the potential to hold from the weekend session but this week’s trading has been dominated by increased selling activities. The biggest blow was the drop under the 50 SMA as it added gasoline to the fire. BCH spiraled to only to find support at $269.51.
A minor recovery took place with the price reclaiming the position above $270 and extending the upper leg towards $380. BCH/USD is trading at $278 at the time of writing. The trend is still bearish in spite of the shallow recovery witnessed.
A glance at the technical levels shows that indeed BCH/USD is in the hands of the bears, at least for the short term. The RSI has retreated into the oversold further highlighting the bearish grip. Similarly, the MACD is dipping deeper into the negative region. The wide bearish divergence from the MACD says that selling activities will continue in the near term.
For now, the main focus is to step above the resistance at $280. This way buyers will be able to shift the attention back to $300. On the downside, support at $270 is key to the uptrend likely to be nurtured above $300 otherwise the lack of it means that breakdown to $260 will become apparent.