- Bitcoin Cash end of the year target at $400 is still intact despite the drop under $300.
- The support at $290 ( SMA 100) must be defended at all costs.
Bitcoin Cash is among the worst hit by fresh declines across the digital asset market. After showering it with praises for jumping above the key $300 level, BCH/USD is unapologetically grinding closer to $290.
In the previous analysis, I explored the possibility of BCH trading above $400 and closer to $500 before the year ends. I still feel the same way and the current retreat is just but a technical reaction.
Meanwhile, the price is trading at $297 following an adjustment from the intraday low of $295. The Bollinger Band 4-hour middle curve is providing short-term support. The next support target is $290 highlighted by the 50 SMA on the 4-hour chart. Further correction south will seek refuge at $280.
The Relative Strength Index (RSI) puts emphasis on the growing bearish momentum. If the RSI explores levels under 50, it will be a miracle if $290 support is not broken. However, the Moving Average Convergence Divergence (MACD) suggests that all is not lost for the bulls. The indicator is still holding ground in the positive territory signaling the presence of buying influence (although minor).
BCH/USD 4-hour chart
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