- Bitcoin Cash trims the gains toward $500 support; down 3.67% on the day.
- BCH/USD could break down further unless a retracement above $510 short-term support comes into play in the shoer-term.
Bitcoin Cash continued to hammer at the $500 broke support yesterday. The good news is that the bulls not only reclaimed this support area but also extended the recovery testing another resistance target at $530. BCH/USD formed intraday highs at $528.13 before losing steam and allowing the bears to enter. The bad news is that the retracement has canceled the gains above $500.
The declines from the swing high failed to find support at the bullish trendline while the short-term support at $510 could not hold for long. Bitcoin Cash is currently flirting with the 23.6% Fib level with a drop from $528.13 to a low of $493.49. The bulls are battling to protect the immediate support at $500 because a slide below this level could test the lows in August around $470.
The stochastic is ranging above the oversold region, which indicates that the buyers still have some power to stop dips below $500. However, this ground they are treading at the moment is not safe at all and a retracement above $510 is required in the short-term. Further up, the 100 SMA at $511.70 and the 50SMA currently at $515.94 (15-minutes chart) will limit gains but a break above the swing high supply zone will open the door for further movement towards $550 and eventually $600.
BCH/USD 15′ chart
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