- BCH/USD is moving within a bearish trend in lockstep with the broader market.
- The recovery is limited by psychological resistance at $300.00.
Bitcoin Cash (BCH), now the fourth-largest digital asset with the current market capitalization of $5 billion, has nearly 10% of its value in recent 24 hours to trade at $284.20 by the time of writing. While BCH/USD has barely changed since the beginning of Wednesday, it is confined to a short-term bearish trend moving in sync with the market.
Read also: Ethereum’s creator Vitalik Buterin suggested using Bitcoin Cash blockchain as a temporary solution for ETH scalability issues.
Bitcoin Cash’s technical picture
BCH/USD bottomed out at $255 on July 15 and recovered to $311. However, a failure to settle above $300 handle increased the selling pressure on the coin and pushed in back in the range limited by towards $260.00 on the downside.
A sustainable move above psychological $300 strengthened by SMA50 (Simple Moving Average) on a 1-hour chart will mitigate the initial bearish pressure and create an upside momentum with the next focus on $314.00. This local resistance is followed by a stronger barrier at $350 created by SMA200 1-hour and SMA50 4-hour.
On the downside, the initial support comes at the intraday low of $272.00, followed by Tuesday’s low touched at $263.00. Once this area is cleared, the sell-off is likely to gain traction with the next focus on $255.00.
BCH/USD, 1-hour chart
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