- The current bullish trend is diminishing as the bears gain traction.
- The RSI’s rejection from the overbought region implies that declines are inevitable in the coming sessions.
Bitcoin Cash extended gains from the recent support at $360. New higher highs and a higher low pattern formed above an ascending trendline. The break above the 23.6% Fib resistance level taken between the last swing high of $409.24 to a swing low of $378.88 ignited the trend above the 100 Simple Moving Average (SMA) resistance.
For the first time this week, Bitcoin Cash exchanged has above the critical level at $400, in turn, giving way for additional gains during the Asian trading hours where the crypto hits highs close to $410. A correction has since occurred from the intraday highs and BCH/USD is changing hands at $401.
The bulls are currently tasked with the task of defending the support at $400. If the price explores the levels below $400 Bitcoin Cash could break down further towards the recent lows at $380 support. Other recent support levels to look out in case of extended declines are $360, $340 and $300.
Meanwhile, the current bullish trend is diminishing as the bears gain traction. Looking at the RSI at 55.55, rejection from the overbought region implies that declines are inevitable in the coming sessions. It is essential that the buyers keep BCH above $400 and focus on higher levels above $410 resistance.
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