- Bitcoin Cash remarkable recovery short-lived around $230 as bears swing into action.
- Lower correction is expected to continue in the near-term according to the technical levels displayed.
Bitcoin Cash had made an enviable move from the recent slump under $220. The price recovered initially above the 50 Simple Moving Average (SMA) on the hourly chart. This gave the buyers a boost to clear the 100 SMA resistance. The price sprung up in an engulfing candlestick stepping above $230 on Monday. However, an almost immediate rejection cut short the bullish action giving way for the ongoing correction.
For now, BCH/USD is dancing at $226.55 while immediately supported above the SMA 50. The SMA 100 is also in line to provide much-needed support. A rising but short-term trendline that has been tested three times is ready to prevent declines towards the key support at $225.
It is clear that Bitcoin Cash is changing focus from $240 (supply zone) to $200 (demand) zone. Showing the strength, the bears have is the retreating full stochastic oscillator. The Moving Average Convergence Divergence (MACD) is also entertaining a negative divergence which signals increasing selling entries. According to these indicators, declines are likely to continue in the short-term.
BCH/USD 60′ chart
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