- Bitcoin Cash price technical picture is positive but buyers lack the energy and catalyst to sustain gains towards $250 and $300 respectively.
- The bearish flag pattern danger of breakdown still lingers with BCH/USD likely to test $200 and $150 support levels.
Bitcoin Cash is strongly nurturing a bullish momentum on Friday. The Asian session has been kinder to Bitcoin Cash as compared to other major cryptocurrencies. Bitcoin Cash is trading at $232 after growing by 1.3% on the day. Marginally downwards, is the initial support provided by the 23.6% Fibo of the last swing high to $499 and a swing low at $135.
A bearish flag pattern support is also in line to provide support, however, if the buyers slip up and the support is shattered, BCH/USD could continue with the devastating fall back to levels at $200. Note that the massive dip a couple of weeks ago forced Bitcoin Cash under $150 only for it to find support at $135.
On the upside, the resistance at $250 must come down in order to pave the way for more gains while allowing the buyers to shift their focus to $300. Meanwhile, the path of least resistance is sideways based on the ranging MACD at +3.6. Buyers are relatively in control as observed with the up-trending RSI. It is clear that the bullish momentum lacks the strength and catalyst to tackle and defend higher support areas above $250.
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.