After breaking below a short-term tentative upside support line taken from the low of March 16th, Bitcoin Cash started slowly drifting south. But recently, the crypto found some decent support near the 214 hurdle, from which it corrected a bit higher. That said, it looks like BCH/USD is struggling with further upside and is now showing signs of willingness to move lower again. But in order to get comfortable with lower areas, we would like to see a drop below the 214 obstacle first, hence why we will remain cautiously bearish, at least for now.
If the fall below the 214 hurdle eventually happens, this will confirm a forthcoming lower low and a few extra sellers may join in. The crypto could then slide to the psychological 200 mark, which is near the low of March 29th. BCH/USD could rebound from there, but if it struggles to get back above the 214 barrier, this might cause another decline. If so, the 200 hurdle could surrender this time and Bitcoin Cash could travel to the 187 level, marked near the low of March 20th.
Our oscillators, the RSI and the MACD, are currently flat. The RSI remains below 50 and the MACD is coinciding with its trigger line, while moving below zero. Both indicators support the idea of staying cautiously bearish, at least for now.
Alternatively, if the price climbs back above the 241 barrier, marked near the highs of April 3rd and 12th, this may spook the bears from the field temporarily and allow more bulls to join in. The crypto could then travel to the 259 obstacle, a break of which may clear the path to the 279 zone, which is the current highest point of April.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.