Bitcoin Cash Price Analysis: BCH/USD slumps under descending channel support

Bitcoin Cash followed in the footsteps of Bitcoin and other major cryptocurrencies. The price is down 4% on the day after opening the day at $237. BCH/USD teeters at $228 while extending the bearish leg below the descending channel. The price is also below the moving averages; both the 50 SMA and the 200 SMA are likely to stand in the way of upward movement at $246.59 and $242.68 respectively.

Looking at the technical picture, Bitcoin cash is primed to continue with the downward trend in the near term. The RSI has sunk deeper into the oversold region. While the drop is bearish, Bitcoin Cash is already oversold. Therefore, we can expect consolidation to take effect if not a significant recovery above $230.

The same downward trend is emphasized by the MACD. The indicator has been stuck in the negative region since June 11. Traders have to watch for a change in the trend of the indicators; MACD and RSI as it will signal the beginning of a bullish reversal. For now, the main task is to keep the price above $225 (initial support). If push comes shove and BCH extends the bearish leg; more support is anticipated at $220, $215, and $200.

BCH/USD 4-hour chart