- Bitcoin Cash loses $40 in 48 hours amid a crypto market crash.
- The 23.6% Fibo is in line to offer the much-needed support above $205.
Bitcoin Cash had earlier in the week corrected above $230. As reported the focus had shifted towards $240 critical level which if broken, would have paved the way for correction to $300. However, the analysis on Wednesday during the European hours explored a reversal movement where BCH slashed gains to the extent of trading below $220.
To make matters worse, Bitcoin Cash buyers were caught in another bearish wave that saw declines cut across the entire market. Bitcoin (BTC) plunged from $8,000 to levels under $7,500 while BCH extended the downtrend, this time, smashing through $200. The price formed a low at $197.77.
An immediate shallow recovery has seen BCH reclaim the ground above $200. The upward movement has fizzled out around $210 with BCH forced to seek balance at the 23.6% Fib retracement level taken between the last swing high of $237.03 to a swing low of $197.93. BCH/USD is teetering at $208.40 amid the increasing selling pressure.
The Relative Strength Index RSI) is making a return into the oversold region. At the same time, the 50 Simple Moving Average (SMA) on the one-hour chart has crossed beneath the 100 SMA. The Moving Average Convergence Divergence (MACD) gradual upward slope shows that buying pressure is present. However, it is not enough to stir significant action to the upside.
BCH/USD one-hour chart
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