- The high concentration of sellers at $300 limits bullish advances.
- The Elliot Wave Oscillator displays a series of bearish sessions likely to end up in a breakout.
Bitcoin Cash is flexing muscles on Thursday following a minor 0.5% increase in value. With an opening price around $294.55 the price action stretch to highs at $296.05. An intraday low formed at $291.93 is functioning as the immediate support area above the significant support at $290.
BCH/USD daily chart
Bitcoin Cash continues to record a lower high pattern as the trend narrows towards the pivotal $300 level. From the highs recorded in June BCH has lost more than 42% of its value. The initial correction from July’s low marginally above $250 failed to clear the resistance provided by the 50-Day Moving Average (MA) roughly at $350.
The extremely high negative volatility across the entire cryptocurrency market in August made it even more difficult for Bitcoin buyers to defend critical support areas. Bear pressure pressed on the support targets culminating in declines below $300. BCH/USD extended the losses last week to $270 before a recovery action ensued.
The high concentration of sellers at $300 limits advances by the bulls. Besides, as long as BCH remains under the 50-day MA, the downside will be vulnerable to losses.
The Moving Average Convergence Divergence (MACD) is stuck in the negative region. However, the visible positive divergence suggests that buyers have the upper hand in the near-term. Similarly, the Elliot Wave Oscillator displays a series of bearish sessions likely to end up in a breakout.
On the downside, Bitcoin Cash still maintains ground above a long-tern ascending trendline. However, if the trend support gives in at some point, we can expect BCH to slide towards $250 (July support).
Bitcoin Cash Key Levels
Spot rate: $296
Relative Change: +0.75365
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige