- Bitcoin Cash freefalls under the descending channel support as broad-based selling activities hit the market.
- Bitcoin Cash oversold conditions hint that a reversal is around the corner.
Bitcoin Cash is wrecked after dropping like dead weight in the air. The entire crypto market is in bloodshed as volatility returns. BCH/USD has corrected lower by 3% on the day. Note that before the rollercoaster downswing, Bitcoin Cash had recorded incredible gains even testing the hurdle at $245.
Over the last seven days, BTC/USD lost most of the gains within the confines of a descending channel. The last stroke happened within minutes during the European session on Thursday with losses extending to $215.
A shallow recovery has pulled BCH back into the channel. It is trading at $221 but the path of least resistance remains downwards. Bearish pressure is reinforced by the RSI as well as the MACD. The RSI is deep into the oversold region while the MACD is extending the leg under the midline.
Support at $220 must hold for Bitcoin Cash bulls to shift their focus upwards. Since the RSI is in the oversold region, a reversal could be in the offing.
BCH/USD 1-hour chart
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