- Bitcoin breaks the uptrend amid broad-based declines.
- BCH/USD still poised for declines in the short-term unless a correction occurs above $400.
Bitcoin Cash joined in the plunge seen across the board during the Asian trading hours on Tuesday. The declines commenced moments before the closing of the session on Monday. Before the bear pressure, BCH/USD was consolidating just above $400 level.
A correction below the ascending trendline support at $437.67 ignited more declines as the bears rushed in to get a piece of the cake. The price flashed dropped below the 100 Simple Moving Average (SMA) 4-hour. BCH/USD was unstoppable at $400 but was able to find support at the 50% Fib level taken between the last upswing at $484.73 and a downswing of $273.57.
Looking at the chart, the Relative Strength Index (RSI) is unable to recover from the oversold and seems to be finding a bottom at 30.00 embarking on an upward move. The widening divergence in the Moving Average Convergence Divergence (MACD) shows that the price is still poised for declines in the short-term unless a correction occurs above $400.
However, with Bitcoin Cash trading at $392, the biggest question is, can the 50% Fib level support hold? The traders need to look out for any pullbacks towards the next support target at $380. This will be an indication of the continuing breakdown. Although, if the $400 support is reclaimed, the movement towards $420 will be a huge possibility.