- Bitcoin price suffers the pain of rejection from levels above $240; will $232 and $230 hold?
- The inverse head-and-shoulders pattern presents hope for a significant lift-off towards $300.
Bitcoin Cash is dealing with increased selling pressure on Friday during the Asian session just like the other major cryptocurrencies. Over the last week, it has become difficult to sustain gains above $240. Earlier this week, Bitcoin Cash tumbled to lows at $225. The slump was a wake-up call to the buyers, who joined the market in numbers pushing BCH above $240 on June 17. Unfortunately, the breakout did not get the volumes to continue with the uptrend leading to another slide, currently seeking support at $230.
In the meantime, Bitcoin Cash is teetering at $233. It is also holding onto the support short term support at $232. The recent bearish move due to the rejection above $240 has completed the formation of an inverse head-and-shoulders (H&S) pattern. This pattern mainly signals a reversal from a downtrend. In this case, the losses towards $230 are expected to give way for a massive breakout not targeting $240 and $250 but $300.
The prevailing technical picture is bearish, especially when the RSI and the MACD are brought into the picture. Losses are bound to continue under the short term support at $232. However, I expect Bitcoin to bounce off the support at $230. If the sellers overshoot this zone, Bitcoin Cash is unlikely to go beyond the major support at $225.
BTC/USD 1-hour chart
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