- Bitcoin Cash buyers defend $260 support, resulting in a shallow recovery above $270.
- A forming falling wedge pattern is BCH/USD blessing in disguise, likely to support recovery to $350.
Bitcoin Cash lost balance alongside other cryptos over the weekend. The sharp drop scattered the buyers from an attempted recovery above $350 on Saturday. Losses became unstoppable with BCH/USD unable to find balance at multiple support areas including $330, $300 and $270. The bearish leg extended towards $250 but a low formed at $260, allowing the buyers a chance to enter the market.
BCH/USD has jumped above $270 and is looking forward to reclaim the ground past $280. The crypto is already oversold and therefore a reflex bullish action is expected to correct the declines with a possible jump above $300.
From a technical perspective, the sellers are largely in control especially when the MACD is considered. The indicator is stuck in the negative zone and features a vivid bearish divergence. The RSI is also stuck in the oversold region (under 30). Resurfacing above 30 would mark a possible return of the bulls likely to pull BCH/USD upwards.
The forming falling wedge pattern is the silver lining on this ‘dark’ day in crypto and mostly for Bitcoin Cash. To ensure a reversal above the pattern’s resistance is viable, a bottom or credible support must be found. Meanwhile, support at $260 and $250 remains vital to the bulls as they plot the next move above $300.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.