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Bitcoin Cash anxiously waits for this triangle pattern breakout

  • Bulls must defend the 38.2% Fib level support to prevent the retesting of $120 support zone.
  • Bitcoin Cash is approaching a triangle breakout amid general market lull.

Cash recently succumbed to the bear pressure in the market in tandem with major cons like Bitcoin (BTC and Ethereum (ETH). Before the drop, the asset had tested the high close to $170. However, the declines send to downwards where it steadily slipped below $150. The bears increased their grip as Bitcoin Cash broke down further below other support areas at $140 and $135.

The losses have resulted in BCH/USD entering a bearish zone while testing the next support at $120. The buyers came out of the hibernation defending the support area in order to prevent continued breakdown. It formed a low around $120.5 before embarking on the current consolidation with the upside limited at $130.

At the time of press, Bitcoin Cash is trading at $127.27 following losses of 1.87% on Friday. Marginally above the current price, the 50-day Simple Moving Average (SMA) standing in the way of the correction to the upside. Besides, the 100-day SMA will hinder growth at $128.34.

The forming triangle pattern is also approaching a breakout. The bulls need to increase their momentum in the short-term for a breakout to mature. If they can escape the resistance at $130, it will be possible to correct towards $140. Meanwhile, holding the ground above the 38.2% Fib retracement level with the last upswing at $142.67 and a downswing at $121.30 support is important for the bulls. It will allow them to gather strength for more correction north.

BCH/USD 1-hour chart

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