- Bitcoin Cash appreciates 3.9% on Wednesday as bulls return following the recent drop.
- The resistance at the 50 SMA currently at $300 must be overcome for more correction to the upside.
Bitcoin Cash is revamping the uptrend after falling victim to selling pressure for the second time in the same week. The initial drop towards the end of the last week culminated in a dive under $300 on Monday this week. Moreover, the losses extended below the key support at $260 forming a July low at $255.
The staged recovery stepped above the resistance at $300 and $320 respectively hitting a weekly high at $328 before retracement began. The bearish pressure across the entire market on Tuesday saw BCH/USD tumble massively right back to the recent support at $260.
Meanwhile, there has been a correction from the key support area where the price is dancing with $293 while grinding closer to the hurdle at $300. The price has stepped above the 21 Exponential Moving Average (EMA) hinting that upward movement is apparent in the short-term. Other indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are creeping higher suggesting the bulls are gaining traction.
The resistance at the 50 Simple Moving Average currently at $300 must be overcome for more correction to the upside. The 100 SMA currently at $312 will hinder growth towards the next significant hurdle at $320.
BCH/USD 1-h chart