Bitcoin Cash (BCH): Double bottom breakout limited – more to come

There is hope that the market will close in the green following the declines yesterday. The volatility that had been ousted seems to be back with a bang. Bitcoin Cash corrected lower after failing to overcome the resistance at $120. The bulls could not force a reversal leading to more break down below $177, $116 and $111 support zones. However, the crypto found bearing at $110; an area with a high concentration of buyers.

Bitcoin Cash bounced back up in a couple of successive engulfing candles. A correction was made above the hurdles at $116 and $117. On brushing shoulders with $120, the bulls lost balance and BCH/USD trimmed the gains. Short-Term support has been established slightly above $112.

At present, the digital asset is trading at $114.91. A contracting triangle on the 15-minutes timeframe chart is approaching a breakout that could BCH retest at $120 and correct towards $130. Meanwhile, the 50-day Simple Moving Average (SMA) is providing immediate support while stronger support established at $110. According to other technical indicators, Bitcoin Cash will continue to correct upwards in the short-term.