- Bitcoin Cash fails to defend $220 support as bears increase momentum towards $200.
- The falling wedge pattern forming is a silver lining that a reversal is imminent.
Bitcoin Cash price is not slowing down in its downtrend momentum following Thursday’s rejection at $250. In an earlier published analysis, BCH was holding ground above $225. However, increasing bearish pressure has continued to press down on the vital support levels. Already $220 has caved in and BCH tanked lower towards the short term support at $210.
The 4-hour chart for BCH/USD shows the price struggling to hold above the new falling wedge pattern. It is apparent that a drop beneath this zone will exploit the support at $210 and let the price grind toward $200.
Technically, the sellers have more control with RSI diving deeper into the oversold. On the brighter side, the oversold conditions are likely to stir action towards the support turned resistance at $220. The bulls must ensure the current battering from as the MACD shows that the grip by the sellers will last longer. Moreover, the ballooning gap between the 50 SMA and the 100 SMA points towards increasing selling activity.
BCH/USD 4-hour chart
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