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.

John Isige FXStreet

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

Author

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

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