- Bitcoin Cash resumed the uptrend on Wednesday forming a two-month high at $172.87.
- The short-term support at $166 will hold as long as the RSI continues to rise.
The gains on Wednesday this week were nothing but a bull trap. Bitcoin Cash reacted alongside other cryptocurrencies on the market from the support formed on Tuesday at $152.58 (Fibonacci swing low). The upside correction stepped above both the 50 SMA and the 100 SMA 15-minutes and in turn reigniting momentum above the 23.6% Fib retracement level with the last swing high of $172.67 and a swing low of $152.58.
The ballistic motion formed a two-months high roughly at $172.87. However, as mentioned the gains have opened the Pandora box and Bitcoin Cash is dropping fast below $170 towards the 61.8% Fibonacci level 15-minutes.
The Simple Moving Averages which were playing catch during the upward correction are currently limiting gains (the 100 SMA at 167.59 and the 100 SMA at $168.07). It is essential that the bulls pull BCH above $170 further correction towards $180 and eventually the coveted $200. Meanwhile, the short-term support at $166 will hold as long as the RSI continues to rise. Moreover, the MACD has to recover into the positive region to confirm the uptrend. Other vital support areas include $156 and $152.
BCH/USD 15′ chart
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