Bitcoin Cash Market Update: BCH/USD engages the reverse gears
|- Bitcoin Cash's new bearish momentum targets possible support at $300.
- Technical indicators send mixed signals but the RSI’s retreat reflects the rejection from highs above $350.
Bitcoin Cash has retreated 5% following the incredible surge witnessed in the last two days. The cryptoasset started 2020 barely above $200 but has broken numerous barriers to test highs past $350.
At the time of writing, BCH is trading at $329. The bearish momentum seems as though it will test the tentative support at $300. However, bulls expect the 38.2% Fib retracement level taken between the last drop from $519 to a low of $170 to prevent dips under $300.
The reversal is reminiscent of the drop in the level of the Relative Strength Index. If retreat continues under 70 (the overbought region), Bitcoin Cash could eventually return into the $200 range.
On the other hand, the Moving Average Convergence Divergence (MACD) bullish cross says that the bulls still have influence. In this case, support above $300 is the best gift the bulls can give themselves in the near-term. If push comes to shove and losses progress further, additional support is likely to come from the levels at $250 (236% Fibo), $200 and $170.
BCH/USD daily chart
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