Bitcoin Cash price analysis: BCH/USD overwhelmed by selling pressure; reversal ongoing

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  • BCH/USD ongoing correction has brought to an end the bullish momentum towards $400.
  • Higher consolidation expected for Bitcoin Cash price: Moving averages suggest.

The bear pressure affecting Bitcoin is finally catching up with Bitcoin Cash (BCH). The crypto managed to extend the weekend winning streak from the weekend low around $302.38 to a weekly high at $358.49. The initial break above the 50 Simple Moving Average (SMA) at $318 clearly signaled for more buying entries. Tremendous support occurred on stepping above the 100 SMA as well.

However, the ongoing correction has brought to an end the bullish momentum. In fact, the price is currently exploring the levels below the ascending channel. If the 50 SMA fails to hold the declines, expect Bitcoin Cash to test the short-term support at $335.

Meanwhile, the longer-term 100 SMA is in line to defend the next support target around $330. In addition to that, traders need to be on the lookout for other lower support zones ranging from $325, $320, and $300 – $305.

In a technical perspective, this reversal is not the end of the bullish trip towards $400. For instance, the 50 SMA double-cross above the 100 SMA at 323.81 hints a higher consolidation for BCH. Besides, the wide gap between the moving averages suggests the buyers have influence over the price in the current session. On the downside, the full stochastic oscillator is dipping into the oversold. This means that the path of least resistance is downward. However, on hitting oversold levels we can expect a reversal of the price.

BCH/USD 1-hour chart

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