Bitcoin Cash Technical Analysis: BCH/USD back to the drawing board, seeks support at $230

Bitcoin Cash followed the general downtrend in the market on Wednesday and Thursday. Prior to this, bulls had purposed to pull BCH above $250. Unfortunately, the momentum hit a wall at $245. The reversal that followed dispersed the bulls, ousting all the buying pressure. This saw Bitcoin Cash slump back under $240 and $230 levels. A weekly low was also traded at $226, marking the end of the downtrend, at least for now.

BCH/USD is exchanging hands at $231 while seeking support above $230. The prevailing trend is leaning to the south, especially with the RSI starting to resume the negative gradient. However, short term trading will also be characterized by sideways action as long as support at $230 stays put.

Consequently, the MACD has stalled under the mean line (0.00). This shows that buying activity has reduced greatly. Perhaps most buyers are watching from the sidelines for Bitcoin Cash to confirm the uptrend before they jump in.

Traders can watch out for the MACD’s cross into the positive region, likely to encourage buyers to join the market in anticipation of $240 and $250 before June comes to an end. Other hurdles expected on the upside include the 50 SMA in the 1-hour range ($234) and the 200 SMA ($235.48).

BCH/USD 1-hour chart

More Bitcoin Cash levels