- Bitcoin Cash buyers defend $260 support, resulting in a shallow recovery above $270.
- A forming falling wedge pattern is BCH/USD blessing in disguise, likely to support recovery to $350.
Bitcoin Cash lost balance alongside other cryptos over the weekend. The sharp drop scattered the buyers from an attempted recovery above $350 on Saturday. Losses became unstoppable with BCH/USD unable to find balance at multiple support areas including $330, $300 and $270. The bearish leg extended towards $250 but a low formed at $260, allowing the buyers a chance to enter the market.
BCH/USD has jumped above $270 and is looking forward to reclaim the ground past $280. The crypto is already oversold and therefore a reflex bullish action is expected to correct the declines with a possible jump above $300.
From a technical perspective, the sellers are largely in control especially when the MACD is considered. The indicator is stuck in the negative zone and features a vivid bearish divergence. The RSI is also stuck in the oversold region (under 30). Resurfacing above 30 would mark a possible return of the bulls likely to pull BCH/USD upwards.
The forming falling wedge pattern is the silver lining on this ‘dark’ day in crypto and mostly for Bitcoin Cash. To ensure a reversal above the pattern’s resistance is viable, a bottom or credible support must be found. Meanwhile, support at $260 and $250 remains vital to the bulls as they plot the next move above $300.
BCH/USD 1-hour chart
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