Bitcoin Cash Price Analysis: BCH/USD retreats to test $400 support ahead of breakout to $500
|- Bitcoin Cash retreat from yearly highs at $462 is necessary for the next rally as long as $400 support is not broken.
- Sideway action is anticipated in the short term as observed by both the RSI and the MACD.
It the second day of dealing with a bloody cryptocurrency market. Cryptoassets led by Bitcoin (BTC) are retreating from the recent high (weekend highs) after meeting increased selling activity. For some digital assets such as Bitcoin Cash are not fundamentally ready to tackle higher levels, hence the retreat in order to create stronger technicals and fundamentals to advance higher.
Bitcoin Cash is dealing with a 1.52% loss on the day after correcting from $452 (opening value) to $446 (market value). Very little progress has been made to the north where $453 is the intraday high.
The sideways movevements of the technical indicators such as the RSI above 70 and the MACD at +40 signal that stability could prevail with BCH trading sideways in a narrow range between $440 and $440. It is also evident that the bulls are in control in spite of the correction witnessed. This means that we cannot put $500 out of the picture. Support could come from the ascending trendline, $400. The 38.2% Fibo at $300 and $250.
BCH/USD daily chart
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