Bitcoin Cash Market Update: BCH/USD engages the reverse gears

Bitcoin Cash has retreated 5% following the incredible surge witnessed in the last two days. The cryptoasset started 2020 barely above $200 but has broken numerous barriers to test highs past $350.

At the time of writing, BCH is trading at $329. The bearish momentum seems as though it will test the tentative support at $300. However, bulls expect the 38.2% Fib retracement level taken between the last drop from $519 to a low of $170 to prevent dips under $300.

The reversal is reminiscent of the drop in the level of the Relative Strength Index. If retreat continues under 70 (the overbought region), Bitcoin Cash could eventually return into the $200 range.

On the other hand, the Moving Average Convergence Divergence (MACD) bullish cross says that the bulls still have influence. In this case, support above $300 is the best gift the bulls can give themselves in the near-term. If push comes to shove and losses progress further, additional support is likely to come from the levels at $250 (236% Fibo), $200 and $170.

BCH/USD daily chart