- Bitcoin Cash corrects from a failed attempt to break above $400 resistance zone.
- The double-top pattern jeopardizes Bitcoin Cash’s chances of sticking above $370.
Bitcoin Cash has slowed down the momentum emanating from the recent recovery from the regions underneath $300. The bulls intended to beat the resistance at $400 and form new 2020 highs above $404. However, the bears had a different plan, especially with their congestion between $390 and $400.
The Asian session on Thursday has been marred by increased selling activity. BCH has lost 1% of its value on the day after it opened the session at $379. BCH/USD is teetering at $374 but interestingly the cryptocurrencies live rates table shows that Bitcoin Cash is facing a bullish momentum amid high volatility levels. This means that a reversal is in the offing in the near term.
Bitcoin Cash technical picture
Looking at the 4-hour chart, Bitcoin is still battling the impact of formed double-top pattern. The impact of the pattern could have overarching effects especially if the short term support at $370 fails to hold. The best card the bulls can play is to defend $370 support to ensure that they do not lose sight of $400.
The RSI is retreating from the overbought region and could encourage more entries by the bears, which is likely to push BCH towards $360 support. The MCAD is horizontal at 13.66 level but it is inclined southwards. An impending bearish cross could be the signal of a tighter grip by the bears.
BCH/USD 4-hour chart
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