Bitcoin Cash Price Analysis: BCH/USD weekend action turns bearish, can the $340 support hold?

  • Bitcoin Cash reclaims the fourth spot on the market by market capitalization from its rival Bitcoin SV.
  • Bitco9n Cash is likely to continue with the downward momentum all weekend long.

Bitcoin Cash recently stepped above $400 in conjunction with the incredibly bullish cryptocurrency market. The January rally has changed many analysts’ perspectives of the cryptocurrency performance in 2020. For instance, Fundstrat’s Tom Lee believes that the rally improved the dynamics of the market.

Bitcoin Cash momentarily lost its fourth position on the market following its rival’s Bitcoin SV massive surge. However, BCH has already reclaimed the position with a market cap of $5.97 billion. Bitcoin SV, on the other hand, holds the fifth position and features a market cap that stands at $3.50 billion.

Bitcoin Cash technical picture

Meanwhile, BCH is teetering at $358, following an adjustment from highs around $404. Likely to offer initial support if the downward momentum continues is the ascending trendline. Slightly below it, the 61.8% Fib retracement level taken between the last swing high of $404 to a swing low of $233 at 340 presents formidable support.

Technical analysis hints that the bearish correction could continue throughout the weekend session. Looking at the RSI, I can tell that the bears are currently fully in control. Besides, the MACD features a bearish cross that further cements the sellers’ influence over Bitcoin. At the same time, recovery will not come easily unless Bitcoin bulls find credible support, increase their entries and push the price above $400.

BCH/USD 1-hour chart

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