Bitcoin Cash market update: BCH/USD retesting key support area

Bitcoin Cash smashes through $220 critical level to test the support zone between $213 and $215.
The MACD’s improving positive divergence signals a growing bullish momentum.

Bitcoin Cash could no longer defend that support discussed on Wednesday at $220. As predicted in the price analysis, a break under the support tested the next target support around $215. Moreover, Bitcoin Cash bears extended the action to a low of $213.

Meanwhile, Bitcoin Cash is trading at $215 following a shallow recovery. Pressing down on the price is the descending trendline resistance. The 50 Simple Moving Average (SMA) on the one-hour chart crossed below the longer-term 100 SMA suggesting that a lower consolidation should be expected. The widening gap between the SMAs emphasizes that the bears have control over the price.

The downtrend seen with the Relative Strength Index (RSI) is giving sellers confidence to increase their entries. The RSI is almost hitting levels under 30 to show that a reversal is imminent from the oversold conditions. The Moving Average Convergence Divergence (MACD) signals a growing bullish momentum in the near-term, unlikely to push the price above the trendline resistance.

BCH/USD one-hour chart

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