Bitcoin Cash embarks on another gain trimming exercise

Bitcoin Cash is leading the market in trimming the weekly gains. The asset has corrected lower 2.44% according to the live rates provided by FXStreet. Following the declines on January 20, Bitcoin Cash consolidated the losses above the support at $120. The trend was stable with the upside capped at $123.28 and the bullish breakout on Tuesday 22.

The buyers reversed the trend upwards as the price broke above the 61.8% Fibonacci retracement level with the last upswing of $134.80 and downswing of $119.75. The momentum was unstoppable with Bitcoin Cash stepping above the resistance at $130 and testing the next hurdle at $134. However, the bullish momentum hit a wall and bounced allowing the sellers to revenge as BCH/USD trimmed gains.

At press time, Bitcoin Cash is trading at $124.99. The short-term support at $126 gave in to selling pressure but now currently is working as a resistance zone. The prevailing trend is strongly bearish and according to the technical indicators, Bitcoin Cash is likely to continue breaking down further towards the previous support at $120. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators are in a downward projection hence indicating that the bears are in control. If BCH/USD can keep the price above $124, then it is likely to reverse the trend towards $130 in the short-term.

BCH/USD 1-hour chart