- Bitcoin Cash breaks down gradually in the confines of a descending channel.
- A sideways trend could take precedence especially with the RSI ranging at 44.
Bitcoin Cash is still battered by the selloff that continues to dominate the cryptocurrency market since the week began. Besides the trading last week culminated in losses on Friday when BTC corrected from highs around $228 to levels close to $220. The selloff extended through the weekend pushing the price in the direction of $200.
Meanwhile, Bitcoin Cash smashed through the short term support at $200 but managed to defend the next anchor at $200. The descending channel from the recent high continues to limit recovery while ensuring the formation of a lower high and lower low pattern.
The price is trading beneath the SMA on the –hour chart, currently at $210.70 and the 100 SMA, holding ground at $212.18. Also limiting movement upwards is the zone at $215 and $220. On the other hand, an ascending trendline will offer support in addition to the $200 buyer congestion zone at the $190 buy zone.
BCH/USD 1-hour chart