Bitcoin market update: BCH/USD sellers catalyze the breakdown under $220
|- Bitcoin Cash resumes the downtrend in the middle of widespread declines in the crypto market.
- The technical indicators applied spell doom for Bitcoin Cash on the short term.
The crypto market is bleeding across the board. Major cryptos like Bitcoin and Ethereum fall overnight while Bitcoin Cash engaged the reverse gear during Wednesday’s European session. From an opening price of $226.97, BCH ascended to an intraday high of $227.76. Lack of action towards $230 (target resistance) armored the bears with the tools of attack.
Bitcoin Cash fell sharply to $215 support before making a shallow recovery to $215 (current market value). Meanwhile, the price is digging deeper inside the Bollinger Band curves. The BB four-hour middle failed to offer support but is now hindering upward movement. The wide gap between the upper curve and the lower curves means that volatility is at its peak since Monday.
From a technical perspective, Bitcoin Cash is expected to continue languishing in bear pressure. The Relative Strength Index (RSI) dived under the average (50) but stayed above 40. The current sideways movement suggests that Bitcoin Cash will settle in a range. The probable sideways trading is also emphasized by the Moving Average Convergence Divergence (MACD) which is holding above the mean line.
BCH/USD four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.