Bitcoin Cash market update: BCH/USD bearish flag pattern breakdown in the offing
|- Bitcoin Cash stepped above $330 since Mid-August forming a one-month high at $33.73.
- A formed bearish flag pattern’s reaction could force Bitcoin Cash to revisit $300 level support.
- The short-term outlook is strongly bearish but buyers still have the energy to defend key support areas.
Bitcoin Cash resilience to defend $300 support has been astounding. The setback faced yesterday when Bitcoin dived yesterday brought to a sudden end a bullish recovery momentum that had stepped above the key $330 level. Bitcoin Cash zoomed to a September high at $333.73 for retracement started to press down on vital support areas.
The prevailing trend is bearish bias and risks further breakdown if the price reacts to the firmed bearish flag pattern. In technical analysis bearish flags are interpreted as continuation patterns after a brief consolidation. In this case, BCH is likely to push the downtrend further risking a revisit to the $300 support area.
The full stochastic oscillator indicates that the bears are gradually gaining momentum. At the same time the bullish session show by the moving average convergence divergence is diminishing to give way for a bearish action. The MACD is also sitting above the mean line (0.000) to show that the buyers still have the energy to force for more gains in case they can reclaim $320 as a short-term support zone.
BCH/USD one-hour chart
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