Bitcoin Price Analysis: BCH/USD hits wall at $264 and slumps back under $260, what next?
|- Bitcoin Cash bulls are struggling with the resistance at $260 after $264 became impenetrable.
- Consolidation is the only way for BCH as it is likely to allow more buyers to join the market in the short term.
Bitcoin Cash was among the digital assets leading recovery on Friday during the Asian session. However, as we usher in the European session, the momentum is turning bearish and fast. After advancing to intraday highs at $263, the price lost steam, sabotaging the fight for $270. Instead, Bitcoin Cash dived under $260 again. At the time of writing, BCH is trading at $258. Buyers can barely hold in the green, besides the low volatility suggests that price movement s would be limited.
From a technical perspective, Bitcoin Cash is likely to settle for consolidation. The RSI is holding above 60 but has an upward inclination. In other words, as the price consolidates, the most likely direction the trend will take is to the north. The MACD is in the positive region but in a horizontal motion. This means that buyers could remain in control ahead of a breakout above the short term resistance at $260.
Also on the bulls’ side is the moving averages. The gap between the 50 SMA in the 4-hour range and the 200 SMA continues to widen to confirm that buyers have the upper hand. It is, however, important to look at all eventualities, for instance, what would happen if BCH continued to lose ground below $260? In this case, support is expected at $250, both the 50 SMA and the 200 SMA and at $240. The primary support zone lies in the range between $220 and $230.
BCH/USD 4-hour chart
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