Bitcoin Cash price analysis: BCH recovery is limited by $240.00

Bitcoin Cash (BCH) is one of the best-performing cryptocurrencies out of top-20. The coin with the current market capitalization of $4.3 billion has gained over 5% on a day-to-day basis and 6% since the beginning of Monday. At the time of writing, BCH/USD is changing hands at $236.40, off the intraday high of $239.30.

BCH/USD: technical picture

From the long-term point of view, a sustainable move above SMA100 (Simple Moving Average) daily at $229.00 has improved the outlook for BCH/USD and brought $240.00 back into focus. While this barrier remains unbroken, but as long as the price stays above $230-299 area, we have a chance for a retest of $240 and an extended recovery towards $280.30 (SMA200 daily) 

Also, the RSI (Relative Strength Index) on the daily chart looks upwards, which implies that the upside momentum is still strong. Though it should be noted that RSI is close to overbought territory.

On the downside, if the above-said $230-299 area is broken, the sell-off may gain traction. The next support lies with SMA50 daily at $209.00 followed by psychological $200 and the middle line of the daily Bollinger Band at $198.50. Once it is out of the way, the downside is likely to gain traction with the next focus on $185 (the consolidation support of the end of December) December 18 low of $170.00.

BCH/USD daily chart