Bitcoin Cash price analysis: BCH/USD lags symmetrical triangle breakout
|- Bitcoin Cash volatility indicator hits weekly lows amid growing optimism for short-term price growth.
- BCH/USD is strongly supported at $295 and $290.
- Near oversold conditions hint a reversal for BCH in the near-term.
Bitcoin Cash behavior in the past few days is as though the sellers are allergic to the $300 level. All corrections touching this level culminate in BCH retesting support areas at $295 and $290 respectively. For instance, a recovery staged late Thursday rose to $302.24 but immediately reversed to the current market value of $298.94.
The price is trading between the simple moving averages support and resistance areas. Precisely, the 100 SMA is hindering growth at $301.78 while the 50 SMA is offering immediate resistance roughly at $298.73.
The hourly timeframe chart shows Bitcoin Cash failed attempt to break out from the symmetrical triangle resistance. However, the downside appears to be well protected by the 50 SMA support, $295 as well as $290. Further down, the main trendline will be the last resort before BCH losses test $285 support area.
The volatility indicator is at 1.1738; the same level recorded on September 9 level of 1.1738 before the breakout that sent BCH above $310. The full stochastic oscillator also shows BCH at almost oversold conditions. A situation that is likely to lead into a reversal in the nearest future.
BCH/USD 1-hour chart
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