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  • Bitcoin Cash tanks from $250 to test support at $230 amid widespread losses.
  • BCH/USD could settle for consolidation at lower levels before a significant breakout comes into the picture.

The bulls in the cryptocurrency market suffered another blow on Thursday, mainly during the American session. After an entire week of consolidation, cryptos such as Bitcoin Cash (BCH), Ethereum (ETH), and Bitcoin (BTC) saw stability ousted as negative volatility made a grand re-entrance. BCH, for instance, was rejected from highs around $250, broke several support areas including the ascending trendline, the 50-day SMA, and $240.

Support was established above $230, allowing buyers to find balance after a gruesome rollercoaster. At the time of writing, BCH/USD has recovered slightly from the support to trade at $238 (prevailing market value). It is also facing immediate resistance at the 50-day SMA. The main goal for the bulls is to overcome the selling pressure at $240 and shift the focus back to $250 and $300 levels respectively.

From a technical perspective, the journey to $250 and $300 will not be an easy one because the sideways moving MACD points to a lower consolidation. The sideways trading action is emphasized by the RSI; currently horizontal at 48. In addition to that, the gap between the 50-day SMA and the 200-day SMA has been relatively stable in the past week. This means that stability in the range between support at $230 and resistance at $250 would take precedence. Bulls, however, will need to approach this recovery a step at a time, by first conquering $240 and later targeting $250.

BCH/USD daily chart

BCH/USD price chart

 

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