Bitcoin Cash (BCH) defies altcoin decline after bitcoin nosedive

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BCH price is above $ 260 as bulls aim to maintain momentum towards $ 300

Bitcoin cash price was above a key support level, rising to highs around $ 280. Thereafter, prices leveled off at $ 266 due to a slowdown near the critical zone.

Bitcoin Cash in particular stayed green on the day Bitcoin (BTC) price fell from highs of $ 13,800 to lows of $ 12,932. The rest of the large-cap altcoins in the top 10 by market capitalization suffered similarly to Bitcoin. With Ethereum, XRP, Polkadot and Litecoin losing more than 3% of their respective value during an intense sell-off session.

While BCH remains strong above the main support area, the technical picture suggests that a downtrend is likely - if the price falls under increased selling pressure.

BCH / USD technical perspective

The price of Bitcoin Cash has traded higher within an ascending channel, with the altcoin's upward momentum likely to cause bulls to retest the resistance at $ 300. To do this, bulls need to exert more pressure in overarching periods.

A breakout above USD 270 should result in targeting yesterday's highs. This should then give the impetus to turn the hurdle into support. Once that barrier is broken, the bulls could rally to prices close to $ 300 in the next few days.

The MACD suggests that bulls remain in command, as indicated on the 1-hour chart. However, should the bullish momentum dissipate, the simple 100 hour moving average will provide enough support to absorb the bearish pressures around $ 267.

Conversely, a downtrend from current price levels could cause the bears to take control. If BCH sellers are successfully headed to $ 260, the main areas of support around the 100-day simple moving average will be $ 256.96. The daily chart also shows that further declines could force the bulls to defend recent gains at the 200-SMA near $ 247.27 and the 50-SMA near $ 237.70.

Technical analyst Crypto Michael has some advice for altcoin traders :

“It's just not the climate to buy altcoins at this point, which isn't necessarily a bad thing. In trading, patience is the right approach until confirmed. The most important confirmation for buying altcoins is the strength at $ ETH . And a $ BTC that has bottomed out . Both is not the case."

At the time of writing, BCH / USD is trading around $ 269. Buyers in this region may need to defend themselves aggressively to keep sellers from taking the initiative.