- Bitcoin Cash fails to break above the resistance at $540 as overhead pressure increases.
-
As shown by the confluence indicator, little to no support suggests that correction to $400 is likely.
Bitcoin Cash appears to be struggling to hold at $500 in the wake of rejection from highs around $540. A glance at the 4-hour chart highlights increasing overhead pressure. If BCH closes the day under $500, significant downward pressure will come into the picture.
Bitcoin Cash uptrend sabotaged
BCH has in the past few days recovered from Monday’s drop to $400. The momentum was built within a rising wedge pattern. The correction from the weekly high at $540 is testing the lower trendline of the pattern. A break below the lower trendline could call for more sell orders as Bitcoin Cash dives toward $400.
Notably, breakdowns usually occur before the trendlines converge.