Bitcoin Cash Market Update: BCH/USD plummets to $260 ahead of recovery to $300

  • Bitcoin Cash buyers defend $260 support, resulting in a shallow recovery above $270.
  • A forming falling wedge pattern is BCH/USD blessing in disguise, likely to support recovery to $350.

Bitcoin Cash lost balance alongside other cryptos over the weekend. The sharp drop scattered the buyers from an attempted recovery above $350 on Saturday. Losses became unstoppable with BCH/USD unable to find balance at multiple support areas including $330, $300 and $270. The bearish leg extended towards $250 but a low formed at $260, allowing the buyers a chance to enter the market.

BCH/USD has jumped above $270 and is looking forward to reclaim the ground past $280. The crypto is already oversold and therefore a reflex bullish action is expected to correct the declines with a possible jump above $300.

From a technical perspective, the sellers are largely in control especially when the MACD is considered. The indicator is stuck in the negative zone and features a vivid bearish divergence. The RSI is also stuck in the oversold region (under 30). Resurfacing above 30 would mark a possible return of the bulls likely to pull BCH/USD upwards.

The forming falling wedge pattern is the silver lining on this ‘dark’ day in crypto and mostly for Bitcoin Cash. To ensure a reversal above the pattern’s resistance is viable, a bottom or credible support must be found. Meanwhile, support at $260 and $250 remains vital to the bulls as they plot the next move above $300.

BCH/USD 1-hour chart
ETH/USD price 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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Pointing beyond the Moon

The sensations are very positive from a technical point of view. There are several signs that we may be facing the expected bullish market after the Bitcoin halving.

More Bitcoin News

XRP/USD may return to $0.2000 before another bullish wave

Ripple’s XRP settled above $0.2000, which is a positive signal for the coin in the short run; however, the further upside momentum seems to be limited for now.

More Ripple News

Ethereum Chart Update: ETH/USD is fine as long as it stays above daily SMA50

Ethereum (ETH) has been moving inside a range limited by $230.00 on the downside and $240.00 on the upside since Sunday. The coin tested lows at $224/62; however, the sell-off attracted new short-term buyers that pushed the price back above $230.00.

More Ethereum News

ETC/USD recovers from the hardfork-induced sell-off

An essential hardfork Phoenix was activated on the Etehreum Classic blockchain at block 10,500,839. The fork happened on May 31, 2020, ten days earlier than it was previously expected.

More Ethereum Classic News


Bitcoin Weekly Forecast: BTC/USD bulls fight for every inch of the ground on their way to $10,000

After a sharp sell-off at the beginning of the week, BTC/USD climbed back above $9,000 and made its way above another important resistance $9,300.

Read the weekly forecast