Bitcoin Cash market overview: BCH/USD back to the drawing board; testing $280 key support

Bitcoin Cash has been dancing at the edge of a cliff since the beginning of the week. The failure to rise above $325 resistance last week cast a spell on several support areas rendering them ineffective. The support at $320 did little to stop the drop below the 100 Simple Moving Average and the 50 SMA. The rejuvenated bulls forced Bitcoin on the key support at $310 resulting in a sharp drop below $300.

While the sharp drop thrust BCH below $290 support, the next support target at $280 appears to be holding ground. The price is flirting with $281 at press time, although the trend has a southward inclination.

Technical indicators show Bitcoin Cash $280 support in danger, especially with the looming declines. The full stochastic is deep in the oversold. Unless the stochastic revamps the trend with a reversal above 30, we can expect BCH to continue pressing down on the support zone between $280 and $260. The trend observed with the Moving Average Convergence Divergence (MACD) further cements the bears’ position on the market.

BCH/USD 4-hour chart