Bitcoin Cash market update: BCH/USD ends consolidation phase amid looming declines
|- Bitcoin Cash is still supported in with a wide range between $340 and $260.
- A correction above $300 will ensure that Bitcoin Cash stays in a positive zone.
BCH/USD has just broken below the lower channel of the 20-period Bollinger ban, in turn,n putting an end to the consolidation phase that commenced earlier on Monday. Following the formidable surge at the beginning of this month, BCH/USD decreased the upward momentum below the critical resistance level at $340. The downside, has however been protected at $260 support.
Bitcoin Cash is trending above the 100 SMA 4-hour which is currently offering immediate support at $294.2295. The ongoing retracement below the Bollinger band is likely to test $280 short-term support; a move likely to instigate a rebound towards $300.
The RSI in the same range is sliding lower at 44.44. Although its slope is not sharp, the signal could touch the oversold (30.00) before a reversal occurs. The MACD is also in a bearish trend towards the negative territory. The signal divergence although not wide depicts that the bears have control, at least for now.
A correction above $300 will ensure that Bitcoin Cash stays in a positive zone as buyers gather strength to attack $320 and eventually $340. However, in case $280 support caves in, expect BCH/USD to find support at $260.
BCH/USD 4-hour chart
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