Bitcoin Cash price analysis: BCH/USD recovery hits a snag at $730; the contracting triangle pattern nears a breakout
|- Bitcoin Cash price trend is bearish but supported at the 38.2% Fib retracement level.
- Buyers will face immediate resistance at $730, while the key resistance is at $740 in the medium-term.
Bitcoin Cash is slightly bearish on Monday 16, besides it is confined in a contracting triangle pattern which is approaching a breakout in the short-term. The cryptocurrency staged a recovery during the trading at the end of last week after selling activity led to lower corrections at the beginning of the same week. Bitcoin Cash retested the lows traded in June but bounced back up slightly above $670.
The recovery movements overcome the resistance at $700, however, BCH/USD lost its mojo around $730. Significantly, Bitcoin Cash price is changing hands at $724 while supported by the 38.2% Fib retracement level with the last swing high of $817.5 and a low of $655.50. As mentioned earlier, the trend is generally bearish, besides the MACD is advancing towards the negative region while the 100 SMA has crossed above the short-term 50 SMA to signal the presence of selling pressure.
The immediate resistance is at $730 while the key resistance stands at $740, at the same time, $760 is a key breakout point. If the buyers can breach and remain supported above $760, then retracing towards $800 will be well within sight in the medium-term. In the meantime, the buyers need to hold ground above $720 to avoid further declines in the short-term.
BCH/USD 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.