Bitcoin Cash Price Analysis: BCH/USD stalls under $300 as consolidation takes precedence

Bitcoin Cash recently broke above the resistance at $250 which gave the price a boost past $300. A five-months high was traded at $340, marking the end of the rally commenced mid-July. BCH/USD retreated under $300 dealing on being dealt a blow by the descending trendline resistance.

Support was, however, confirmed at $250 with the price immediately bouncing towards $300. The barrier at $300 has proved impenetrable with Bitcoin Cash bulls forced to seek refuge above the 200-day SMA ($273.68). It has become an uphill task to build gains above $300. The struggle is emphasized with the 200-day SMA maintaining the gap above the 50-day SMA.

Other technical indicators currently highlight a possible sideways trend taking over. The RSI is holding the position above 60. Its horizontal motion hints that gains will continue to be limited in favor of consolidation.

A study of the MACD reinforces the sideways price action as it levels at 20. There is a minor bullish divergence that hints that buying pressure is present but only enough to keep BCH pivotal at $290. Glancing upwards, there is potential for more gains erupting above the descending trendline resistance; such a breakout could easily extend above $300.

BCH/USD price chart