Bitcoin Cash Price Analysis: BCH/USD fails to hold $240 ahead of May 15 chain upgrade

Bitcoin Cash opened the trading on Friday at $241.65 and extended the price action to $243.36 (intraday high). A bearish cloud then engulfed the cryptocurrency, forcing it to slip under $240. At the time of writing, BCH/USD is trading at $239 after losing 1.22% of its value on the day. The rest of the cryptocurrency market is in the red after Bitcoin was unable to break above $10,000.

BCH/USD bulls are trying to hold above the 50-day SMA. The prevailing sideways trading action is emphasized by the RSI. The indicator is now horizontal at 50 (average) following a retreat from recent highs at 60. Looking at the Elliot Wave Oscillator the bearish cloud is likely to continue hovering. Since the beginning of May, the indicator’s sessions have been mainly bearish.

On the upside, the short term resistance at $240 must be overcome for further gains towards $250. To sustain the gains above $240 a catalyst like the upgrade on Bitcoin Cash blockchain set to take place on May 15. This upgrade will introduce three new features to Bitcoin Cash making the community excited. It is regarded as a major upgrade because the transaction limit will increase from 25 to 50. The other two features are the opcode ‘OP-Reversebytes’ and the counting of signature operations using the new “signcheck” method.

BCH/USD daily chart