Looking at the technical picture of Bitcoin Cash on our daily chart, we can see that for the past week the crypto has been floating slightly above the 212 hurdle, which continues to hold the price from falling from around the beginning of April. Given a sharp decline in the beginning of September, it might be questionable now, whether that hurdle will provide support again. BCH/USD is now also trading below a short-term tentative downside resistance line taken from the high of August 18th. Although there are signs indicating towards a continuation move lower, in order to get a bit more comfortable with the downside, we would prefer to wait for a strong move below that 212 zone first.
If the 212 area eventually fails to provide support and breaks, that may spook the remaining bulls from the field and allow more bears to jump in. The crypto might make its way to the current lowest point of September, at 199, which if fails to provide support and breaks, could open the way to the 163 level. That level marks the low of March 17th.
The RSI and the MACD are currently flat. Also, the RSI is below 50 and the MACD is below zero and its trigger line. Both indicators seem to support the idea of seeing more downside in the near-term, but the fact that they are flat also suggests to wait for a break below the 212 hurdle first.
Alternatively, if the price jumps and breaks the aforementioned downside line, together with the 256 barrier, that might bring more buyers back to the table. BCH/USD may then travel to the current highest point of September, at 295, a break of which could set the stage for a push to the highest point of August, at 325.
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