Bitcoin Cash Market Update: Will BCH/USD follow this bearish pattern targeting $150?

Bitcoin Cash price incredibly shot up towards the end of last week to the extent that it touched $250. The gains occurred in tandem with a bullish action spearheaded by Bitcoin (BTC)’s approach to $7,000. However, the rejection at $250 put an end to BCH/USD bullish frenzy. Selling action over the weekend trimmed most of the gains whereby Bitcoin Cash tested the support at $200.

In the meantime, BCH/USD is doddering at $207 after adjusting upwards by 2.43% on Monday from $202.70 (opening value). An intraday high has reached $212 marking the digital asset’s first resistance zone.

The prevailing picture is bearish in spite of the bullish action during the Asian session. The RSI is making an attempt to rise above the average (50) after a dip to 44.68. A further upward movement would call for more buying entries. However, the MACD clearly shows that sellers are in control especially when the bearish divergence from the MACD is considered.

The formation of a bearish flag pattern also jeopardizes the progress made last week. If the pattern’s support is broken, we can anticipate an extended bearish action under $200 and targeting $150.

BCH/USD 4-hour chart