Bitcoin Cash is still trending lower inside its descending channel but is hovering around the mid-channel area of interest. If this keeps holding as a ceiling, the price could be due to resume its long-term slide.
Bitcoin Cash has yet to test the Fib levels on what seems to be a correction, though, so there could still be some upside. The 38.2% level is at the $300 area while the 50% level is closer to $350 and the channel top. The 61.8% retracement level is near the 200 SMA dynamic inflection point, which may be the line in the sand for a pullback.
On the subject of moving averages, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. The 100 SMA is holding as dynamic resistance as well. In that case, BCH could be on track to revisit the swing low or the channel bottom.
RSI continues to tread south to indicate that bearish pressure is very much in play. This oscillator has a bit of ground to cover before reflecting oversold levels, so sellers could have some energy to push lower.
Stochastic is already in the oversold region to signal exhaustion among sellers. Turning back up could mean that buyers are ready to return and push for a larger correction.
Still, given the uncertainties weighing on the cryptocurrency industry lately, upside for Bitcoin Cash or its other peers could be limited. After all, the Ethereum upgrade has been postponed again, reminding traders of the persistent issues that could also wind up affecting other coins in the future.
On shorter-term time frames, it can be seen that Bitcoin Cash has broken below a short-term triangle consolidation pattern, also indicative of bearish momentum.
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