BCH/USD: Bitcoin Cash consolidates around $120 as bullish flag pattern is spotted

  • Bitcoin Cash stays in the green awaiting bullish flag pattern breakout.
  • Sideways trading to continues as bullish pressure equalizes bear pressure.

Bitcoin Cash is in consolidation around $120. It recently tested the critical level at $130 but began correction lower. The crypto slightly in the green at the time of writing. However, it has been recording lower highs and lower lows.

Short-Term support has been established at $118; a zone highlighted by the 4-hour 100-day Simple Moving Average (SMA). The 50-day SMA in the same range is offering immediate support currently at $120.80 while Bitcoin Cash is trading at $121.01.

At the moment, the bullish and bearish pressure is affecting the price in equal measures and BCH/USD is expected to trend sideways in the near-term. Similarly, the Relative Strength Index (RSI) on the same 4-hour chart is horizontal at 50%. The RSI has stayed above this level since it retreated from the oversold region on January 9.

In the medium-term, a bullish flag pattern break could place Bitcoin on a trajectory towards $130. On the flipside, if the bears overpower the bulls and a reversal occurs below the support at $118, BCH will find other anchor zones at $114, $110 and $105.

BCH/USD 4-hour chart

BEST BROKERS TO TRADE CRYPTO

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.