CryptoCurrencyNews - 5/16/2018 10:07:52 PM - GMT (+0 )
- Bitcoin Cash failed to crack above $1,400 earlier today. Instead, the coin declined below $1,300, now trading at around $1,250.
- A major resistance level has been established at $1,290.
- A decline toward $1,200 could still happen in the short term as the BCH/USD moving averages are trending downward.
On Wednesday, Bitcoin Cash failed to move above $1,400 but instead fell sharply below the $1,300 price level. The price dip was so steep that it even broke the 76.4% Fib retracement level.
Currently, Bitcoin Cash is holding resistance at $1,290, while its support level sits at around $1,240. However, BCH/USD may trend even lower later this week amid the current crypto selloff. Should it break below $1,250, then further selling pressure could send BCH/USD to closer to $1,200.
The technical chart indicates both directions are possible in the short run. The MACD indicator is giving a bearish signal, while the RSI indicator shows that Bitcoin Cash is being oversold. The next price movement would depend on whether the $1,240 support could hold and how investors react.Looking at the Technical Indicators:
- Hourly MACD — The MACD line movement is showing a bearish signal
- Hourly RSI — Bitcoin Cash has reached the oversold territory
- Major Resistance Level — $1,290
- Major Support Level — $1,240
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