- Bitcoin Cash continues to lag reaction to broken rising wedge pattern.
- Technical indicators suggest that sideways trading will prevail in the near term.
Bitcoin Cash recently stepped above $300. However, an immediate reaction made sure that high levels remained a pipe dream. Following the snag, was a retracement move that found support at the 61.8% Fib level taken between the last swing high of $349.37 to a swing low of $198.18.
Another bullish action retested $300 but the price ended up settling between $300 and $280. BCH is dancing at $289 with its immediate downside supported by the 50 Simple Moving Average (SMA) on the four-hour chart.
A keen observation of the four-hour chart, I can spot a rising wedge pattern. Already BCH/USD has broken below the channel support. If the price fails to reclaim the support, the danger of breaking down even further will become more apparent.
Other technical indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) suggests that sideways trading will take center stage in the short-term.
BCH/USD four-hour chart
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