Bitcoin Cash clasped between key resistance and support after a massive 13 percent drop
December 2nd, 2020
Bitcoin Cash recently recovered from the Thanksgiving Day crypto crash. The losses on Thursday last week failed to embrace support at all the three moving averages; the 50 SMA, 100 SMA, and 200 SMA on the 4-hour chart. Buyer congestion at $250 saved the altcoin from diving further.
The rebound from the crucial support reclaimed the position above $300 earlier this week. However, BCH hit a wall at $320, cutting short the anticipated spike to November’s peak at $373. A correction came into the picture, pulling Bitcoin Cash into a 13% dip.
Meanwhile, BCH/USD seems to have embraced support at the 100 SMA, highlighted at $280. The price is doddering at $289 amid the push to recover the lost ground toward $300. On the upside, movement is likely to be limited at the 50 SMA, slightly under $300.
BCH/USD 4-hour chart
The resistance at the 50 SMA and the support at the 100 SMA might keep Bitcoin Cash in a range before a breakout comes into the picture. Trading above the 50 SMA and the hurdle at $300 will call for more buy orders as the uptrend heading to $373 and $400 is validated.
On the downside, it is essential to hold above the 100 SMA to avert looming declines back to the primary support at $250. The 200 SMA is in line to absorb some of the selling pressure, preventing BCH from diving massively towards $200.
Bitcoin Cash intraday levels
Spot rate: $288
Relative change: 0.55
Percentage change: 0.2%
Trend: Sideways trading bias