- Bitcoin Cash remains bullish in the near term; based on key technical levels.
- The rising wedge pattern formation hints a possible reversal likely to send BCH towards $200.
Bitcoin Cash buyers have in the past three weeks broken several barriers from December low at $170. The return above $200 fueled the gains to levels past $250. Unfortunately, losses gripped the digital asset before the hurdle at $260 was tested.
Among the top ten cryptocurrencies, Bitcoin Cash is the only one slightly in the green. After opening the session on Friday at $237.92, the price adjusted upwards to $237.94 (current market value). An intraday high has been formed at $240 amid the improving bullish trend and the expanding volatility.
Bitcoin Cash short term analysis suggests that more upside action is to be expected. The Relative Strength Index (RSI) is sitting above the average (50) and pointing north. If the indicator maintains the direction towards 70, buyers will gain more confidence and increase their entries. Besides, the Moving Average Convergence Divergence (MACD) bullish cross and the recovery targeting the positive suggests that bulls are gaining traction.
On the other hand, although the short term analysis is bullish, Bitcoin Cash is facing a possible drop that could take it back into the region under $200. The possible drop is warranted by the forming rising wedge pattern. Therefore, to avert such devastating loss, the buyers must bring down the resistance at $260 and focus on higher levels towards $300.
BCH/USD 1-hour chart
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