- Bitcoin Cash resumes the downtrend in the middle of widespread declines in the crypto market.
- The technical indicators applied spell doom for Bitcoin Cash on the short term.
The crypto market is bleeding across the board. Major cryptos like Bitcoin and Ethereum fall overnight while Bitcoin Cash engaged the reverse gear during Wednesday’s European session. From an opening price of $226.97, BCH ascended to an intraday high of $227.76. Lack of action towards $230 (target resistance) armored the bears with the tools of attack.
Bitcoin Cash fell sharply to $215 support before making a shallow recovery to $215 (current market value). Meanwhile, the price is digging deeper inside the Bollinger Band curves. The BB four-hour middle failed to offer support but is now hindering upward movement. The wide gap between the upper curve and the lower curves means that volatility is at its peak since Monday.
From a technical perspective, Bitcoin Cash is expected to continue languishing in bear pressure. The Relative Strength Index (RSI) dived under the average (50) but stayed above 40. The current sideways movement suggests that Bitcoin Cash will settle in a range. The probable sideways trading is also emphasized by the Moving Average Convergence Divergence (MACD) which is holding above the mean line.
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