Bitcoin Cash price analysis: BCH/USD hits oversold levels as reversal impends
|- The ability to correct higher will depend on BCH/USD capacity to defend $300 key support.
- The full stochastic oscillator shows that Bitcoin Cash has been oversold.
Bitcoin Cash is trying hard to stay above $300 on Tuesday. The 4-h hour chart shows a continued downtrend from the high recently hit at $340. With the cryptocurrency market being bearish on Tuesday the ability to correct higher will depend on BCH/USD capacity to defend $300 and reverse above the descending trendline as observed on the chart.
At press time, the price is below the three moving averages: the 50 Simple Moving Average (SMA), the 100 SMA and the 21 Exponential Moving Average (EMA). Volatility is relatively low at the moment despite the price having a bearish bias. BCH/USD trading at $302 after correcting lower 2.4% on the day.
The full stochastic oscillator shows that Bitcoin Cash has been oversold and is getting ready for a bounce. Besides, the upward divergence indicates that the bears are exhausted and if the bulls find an entry position, we could see the price correct further above $300 key support.
Correction above the descending trendline is key for more correction upwards. It also essential that the price jumps above the moving averages as a key indicator of a bullish market. In the meantime, defending $300 support is key to the next move towards $320 critical hurdle.
BCH/USD 4-h chart
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