FX.co ★ Bitcoin Cash correction could be over

Bitcoin Cash moves sideways in the short term and it seems undecided. It's located at 240.92 at the time of writing. After its strong upwards movement, a temporary drop was natural. The altcoin moves sideways trying to attract more buyers before jumping higher.

Bitcoin Cash is up by 2.39% in the last 24 hours but it's down by 0.72% in the last 7 days. In my opinion, BTC/USD's deeper drop should force the altcoin to drop as well.

BTC/USD range

BCH/USD is trapped between 255.25 and 231.61 levels. As you can see on the H4 chart, the altcoin retreated, but it has failed to stay below the 38.2% (238.52) retracement level, signaling that the correction could be over.

Escaping from the range could bring new opportunities. Still, as long as it stays below the downtrend line, the BCH/USD could extend its sell-off.

BCH/USD outlook

A bearish closure below 231.61 could announce more declines. This is seen as a selling opportunity.

Jumping above the downtrend line and through 255.25 activates further growth.