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Bitcoin Cash Down Sharply; Testing Key Support Level

Bitcoin price

The bearish sentiment in the cryptocurrency market has hit Bitcoin Cash hard. In yesterday and today’s trading sessions, Bitcoin Cash lost nearly $30 in value and is now testing critical support identified in my article last week at $238.93.

Current support was a previous resistance of the rectangle pattern observed in the price action of late September and early October 2019.

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Technical Outlook for BCHUSD

So far, the support price at 238.93 is holding up well on the day. A break of this support to the downside as a result of continued bearish pressure on the pair could target the 208.94 support level, formed by the lower border of the rectangle pattern identified earlier. For this to happen, there must be a decisive close below the support area. This could either be by a 3% penetration close below this support on the weekly chart, or by two successive candles closing below the support.

On the flip side, if 239.98 holds well as support and price is able to bounce from this level, this could reopen the door to 274.32 (previous high of October 28 and previous lows of November 8 and 14).More content