Bitcoin Cash (BCH) market update: BCH/USD dancing around $300.00

Bitcoin Cash (BCH) has been growing strongly since the end of Sunday. The fourth largest digital asset topped at $311 and retraced to $300 by the time of writing. BCH/USD is now 8% higher than this time on Sunday.

Considering that the coin is deeply overbought on the intraday charts a further downside correction from the current levels looks likely with the initial support created by $292 (SMA200 1-hour and SMA50 4-hour). Once it is cleared, the sell-off may be extended towards the next barrier $280 created by a combination of SMA50 and SMA100 (1-hour). It is followed by $260 (SMA100, 4-hour). The Relative Strength Index is ready to move out of the overbought territory, pointing downwards to confirm the bear case scenario for the day.

Meanwhile, on the upside, the first barrier is created by $311-$315 area, which includes the intraday high and April 10 high. It is followed by $330 handle; however, the ultimate resistance comes at $350. Strengthened by the recent high $352, it is likely to stop the recovery for the time being.