Bitcoin Cash Price Analysis: BCH/USD recovery gains traction, $300 is still a distant dream

Bitcoin Cash (BCH) has recovered from the recent low of $280.90 and tested the intraday high of $293.39 during early Asian hours. At the time of writing, the fifth-largest digital asset is changing hands at $289.00. The coin has lost 1% since the start of the day, though it is still 2% higher from this time on Thursday. Bitcoin Cash has a market value of $5.233 billion and an average daily trading volume of $1.18 billion.

BCH/USD: Technical picture

On the intraday charts, BCH/USD attempted a recovery above the local resistance created by 50-hour SMA at  $288.80. If it is sustainably broken, the upside momentum may gain traction with the next target at $290, followed by the upper line of the 1-hour Bollinger Band $296.00 THis barrier separates us from the ultimate resistance created by psychological $300.00. The coin attempted a break above this area on Thursday, but the upside momentum was not sustained. 

On the downside, the local support comes at $281.00. This area reinforced by 100-hour SMA stopped the decline on Thursday, which means BCH/USD may need an additional impulse to push through. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $280.00. The RSI on the intraday charts implies that the coin may spend some time in the current range.

BCH/USD 1-hour chart

On the daily chart, BCH/USD retreated below the upper line of the daily Bollinger Band at $294, in line with the technical correction. The longer-term support is created by 200-daily SMA at $273.00. This technical level served as a strong resistance since the beginning of March until it was taken down on July 28. Now it has a potential to limit the decline. 

BCH/USD daily chart