- BCH/USD goes one of the worst selloffs since the recovery of the crypto market commenced in April.
- Bitcoin Cash as explored the levels close to $400 but formed a low at $409.
Bitcoin Cash has not been spared by the ongoing cryptocurrency butchering. This indeed one of the worst selloff since the recovery of the crypto market commenced in April 2019. Bitcoin Cash on en route to new 2019 highs after breaking the hurdle at $500 for the first time this year.
The bulls, riding on the push from Bitcoin (BTC) surge above $10,000 and recently above $13,000 propelled BCH/USD to new yearly highs around $517. The formation of a double-top pattern coupled with high volatility on the market sent Bitcoin Cash into a dire tailspin; one that was unable to find balance at the confluence created by the 50 Simple Moving Average (SMA) 1-h, 100 SMA 1-h and the 21 Exponential Moving Average around $480.
Other key support areas at $460, $440 and $420 did little to stop the declines. Bitcoin Cash as explored the levels close to $400 but formed a low at $409. The negative signals from the technical indicators suggest that $400 support is in danger.
The MACD has dived into the negative while its divergence proposes rising selling pressure in the coming sessions. Similar, suggestions are seen with the RSI in the oversold. Therefore, the path of least resistance is downwards until Bitcoin Cash bulls find bearing.
BCH/USD 1-h chart