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Bitcoin Cash Price Analysis: BCH/USD bulls bravely defend $260 support

  • Bitcoin Cash Friday action stalls short of $280 as bears take over.
  • Consolidation above $260 is expected in the near term.

The cryptocurrency market has commenced the week amid building bearish pressure. The retracement follows last Friday’s shallow recovery that saw Bitcoin Cash push towards $280. The weekend session not only halted the bulls but also forced Bitcoin Cash against key support areas.

The drop below the support at $270 fueled the sellers, with $250 in their sight glass. However, tremendous support at $260 cushions BCH from the drop, allowing for a shallow reversal. Meanwhile, BCH is trading at $264, following a 2% loss on the day.

The immediate upside is limited by the 50 SMA on the 4-hour chart. The gap between the moving averages is narrowing reminiscent of the bearish picture. The trendline support is expected to come in handy.

As far as the RSI is concerned, Bitcoin Cash is likely to settle in a sideways trend above $260. However, the MACD signals that the trend in the near term is going to be inclined to the negative.

BCH/USD 4-hour chart

Author

John Isige

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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