Bitcoin Cash Price Analysis: BCH/USD bulls giving up the fight as $200 beckons

• Bitcoin Cash extended the lower leg to test support at $220; still in danger of further declines to $200.
• An ascending channel is still in place despite the retreat from the recent high at $281.

Bitcoin Cash price continues to drift further and further away from the recent high achieved at $281. While the brief rally supported by its halving last week, a post halving rally has failed to materialize. Instead, BCH/USD has slipped below several key support areas including $250 and $230.

Meanwhile, Bitcoin Cash is trading at $223 as buyers battled the increasing selling pressure in a bid to enact a reversal. Seller congestion at $225 is expected to continue limiting the movement during the Asian session on Wednesday. Moreover, gains targeting $250 will have to face the resistance at the 100 SMA currently holding the position at $223.67 in the 4-hour range and the 50 SMA at $241.

Bitcoin Cash bulls stand a chance of pushing for recovery as long as they defend the ascending channel support. However, a dive under $220 could easily force BCH/USD down a painful journey to test $200.

According to the applied technical indicators such as the MACD, Bitcoin Cash remains vulnerable to losses in the current and even the next sessions of the day. Consequently, the RSI shows that there is a high probability of a sideways trading action between $220 and $225. However, a reversal is still within the picture following a period of consolidation.

BCH/USD 4-hour chart