- Bitcoin Cash is settling in a short-term bullish flag pattern; pending breakout.
- There are a number of key supply zones at $820, $840 and $880.
Bitcoin Cash continues to correct higher even as the week’s trading kicks off today. Following the recent slight dip testing the support level at $740, BCH/USD has been trading higher highs and higher lows through the weekend trading sessions. It is currently battling for a support above $810, although it has traded highs of $836.25 on the day.
The cryptocurrency is also trading at the narrow end of a contracting triangle pending yet another upside breakout in the medium-term. Moreover, the price is settling in a short-term bullish flag pattern. Consequently, technical indicators like the MACD is moving towards the negative levels. However, the moving average gap is narrowing to show that buying pressure is still present.
In the event that the immediate support at $810 gives in to the growing selling pressure, the 61.8% Fib retracement level with the previous swing high of 873.76 and a swing low of $688.26 will work as a support zone marginally above $800. The 100 SMA will offer support above the Fib level while the 50 SMA at $798.62. On the upside, $820 is the immediate upper supply zone and also represents a breakout to $840 and $880 supply zones progressively.
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