Bitcoin Cash price analysis: Recovery stalls as bears take over
|- Bitcoin Cash (BCH) is still in the red after being unable to overcome the resistance at $135.
- Bitcoin Cash bulls are looking forward to pulling above $140 in the near-term.
Following the slight decline in the market on Sunday, most assets are staging recovery movements, although slight ones. Bitcoin (BTC) for instance has revamped the trend towards $3,600 after sliding below $3,500. However, Bitcoin Cash (BCH) is still in the red after being unable to overcome the resistance at $135.
The market, in general, is slightly in the green. The gains come after a $5 billion loss on Sunday. There has been a small recovery on Monday, although assets are still trading close to their recent lows.
After Bitcoin Cash failed to sustain growth above $170, it retreated in a stable range between the higher limit at $165 and the support at $ 150. The selloff midway through last week sent the asset tail spinning below several other support areas at $140 and $130. BCH/USD traded lows around $121 before a weak bounce occurred sending it slightly above $135.
As mentioned above, the bears are in control at press time and Bitcoin Cash is trading below both the 50-day and the 100-day Simple Moving Averages (SMA). The asset is valued at $124.63 and battling to clear the initial resistance at $125. The 50-day SMA will limit growth at $130 while the 100-day SMA is a hurdle slightly above the shorter term SMA.
The key resistance rests at $135, besides this is also a breakout point for Bitcoin Cash bulls who are looking forward to pulling above $140 in the near-term and reclaiming the support at $150 in the medium-term. The ultimate resistance is at $170, meanwhile, the Relative Strength Index (RSI) shows that the sideways trading is bound to continue.
BCH/USD 1-hour chart
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