Bitcoin Cash price analysis: BCH/USD defends 61.8% Fib level support
|- BCH/USD gives in to selling pressure, tumbles below $400 key level.
- A correction past $400 will allow the bull to focus on the recovery to highs around $450.
BCH/USD buyers are celebrating the fact that the declines stalled at the confluence of the ascending trendline and the 61.8% Fib retracement level taken between the last high at $452.85 and a swing low of $230.25.
As discussed in the price analysis yesterday, BCH/USD was struggling to stay above $400 support. However, the bearish wave that affected most of the digital assets on the market in the evening (GMT) session on Wednesday and the Asian trading session on Thursday broke this support area only to find support at the 61.8% Fib level.
While trading at $386 at press time, Bitcoin Cash is above the 100 Simple Moving Average 4-hour chart. A weak bullish motion is building from the above-mentioned support with $400 in the bulls’ sight glass. The growing momentum is emphasized by the Relative Strength Index (RSI) heading north after avoiding the oversold region.
The moving average convergence divergence (MACD) has also slowed down the dip into the negative zone and is likely to retreat into the positive region, in turn, confirming the bullish momentum. A correction past $400 will allow the bull to focus on the recovery to highs around $450 in the near-term.
BCH/USD 4-hour chart
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