Bitcoin Cash price analysis: BCH/USD is trading head-and-shoulder pattern, encounters high resistance at $1,000 level

Bitcoin Cash price traded above the $1,000 level on during Tuesday morning trading session, however, the bulls failed to sustain the gains. The currency declined to complete the head in the forming head-and-shoulder pattern. There is a growing bullish trend with the increases capped below $1,000 level as BTC/USD starts the second leg of the shoulder indicating a possible selling point.

The bulls have been in control of the market in the last 48 hours where Bitcoin Cash recorded higher highs and higher lows. The upside gains were initiated from lows of $845 to highs of $1,020 as buying activities increased following the favourable news for the entire cryptocurrency market from Mark Carney Chair of the G20 financial watchdog.

Bitcoin Cash is trading above the 50-simple moving average trendline, which is narrowing the gap towards the 100-simple moving average to indicate a possible sustained uptrend in the short-term. The 23.6% Fib retracement level with the last swing high $1,054 and a low of $845, acted as the support for the decent and is now working as the resistance level in the path of recovery. The immediate support level for Bitcoin Cash is at $960.

BCH/USD hourly chart