On Wednesday, Bitcoin Cash broke below yesterday’s support of $1,125, now approaching the $1,110 territory.
Earlier in the day, BCH/USD reached a high of $1,160 before a major cryptocurrency selloff occurred.
BCH/USD managed to recover from the latest selloff, now forming a bullish trend line after holding support at $1,090.
Bitcoin Cash Fails to Hold Support
On Wednesday morning, Bitcoin Cash broke below yesterday’s support of $1,125, now trading in the $1,110 territory and holding support at $1,090. However, the price decline didn’t last long to reach a Fib retracement level of $1,075. From its support level, BCH/USD started to recover from the latest selloff and formed a bullish trend line. Signs point to BCH/USD testing a resistance level of $1,120 in the short term.
Recently, traders accused CNBC’s Fast Money program of trying to create an artificial hike in Bitcoin Cash price. Bears believe CNBC has continuously been inviting Roger Ver and Brian Kelly to express their bullish views on the future fundamentals of Bitcoin Cash.
Looking at the technicals chart, the hourly MACD lines are showing a bearish signal. This is also confirmed by the RSI indicator, which places Bitcoin Cash in overbought territory. Trading volume has subsided since the earlier selloff.
Looking at the Technical Indicators:
Hourly MACD — Bearish signal
Hourly RSI — Bitcoin Cash is in overbought territory
Major Resistance Level — $1,120
Major Support Level — $1,090
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