- Bitcoin Cash renews the bullish momentum after testing support at $220.
- BCH/USD is on the verge of breaking resistance at $230 in a bid to push for breakout to $240 and $250.
Bitcoin Cash has bounced off the support zone between $220 and $225. This cryptocurrency like many others, extended the bearish action during the weekend session. Prior to the flash drop, there was an attempt to correct above the descending trendline resistance but the bulls failed. BCH/USD bulls are currently holding onto the 2.62% gains on the day. From an opening value of $222.85, the price is dancing at $228.
According to the applied technical indicators, it is very likely that Bitcoin Cash will bring down the seller congestion at $230 in the near term. The RSI uptrend from the weekend oversold levels has stepped above the average. Continued action towards the overbought would also encouraged more buyers to join the market. This coupled with the bullish divergence from the MCAD suggests that recovery is in the picture and more upward price movements are anticipated in the European and American sessions.
On the upside, a break above $230 could pave the way for gains towards $240. Moreover, if the descending trendline resistance is overcome, then a larger breakout is expected to close the gap towards $250. On the downside, support is expected at $225 and $220 respectively. Extended losses would test the major support at $200.
BCH/USD hourly chart
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