- Bitcoin Cash bulls disperse as sellers adjust their sitting positions in the driver seat, eyes set on $200.
- The path of least resistance remains to the downside for Thursday but if $250 support is reclaimed, the focus may shift to $250.
Bitcoin Cash is trading in the red on Thursday after the channel support I discussed on Wednesday gave in to the selling pressure. The tentative support at $220 was also overwhelmed with the sellers rapidly moving towards $200. An intraday low has been hit at $206.35, giving way to a bounce above $210 amid expanding volatility. At the time of writing, Bitcoin Cash is trading at $211.
BCH/USD 4-hour chart
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The prevailing technical picture has a strong bearish bias as observed with the dropping RSI. From high reached above 70 (overbought region) on April 7 amid during its reward block halving, the indicator is barely holding above 30 (oversold region). The MACD in the same range shows that bears are in control and the situation is likely to remain the same throughout the day as long as BCH/USD does not reclaim the ascending channel support.
Glancing upwards, Bitcoin Cash is trading under the moving averages. The 50-SMA is about to cross below the longer-term 100 SMA. Such a cross is a bearish indicator likely to increase the sellers’ influence over the price. If Bitcoin Cash manages to reclaim the support at $220, there will be a chance to focus on higher levels beyond $250 towards the weekend session.
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