Bitcoin Cash price analysis: BCH/USD recovery hits a snag at $730; the contracting triangle pattern nears a breakout

Bitcoin Cash is slightly bearish on Monday 16, besides it is confined in a contracting triangle pattern which is approaching a breakout in the short-term. The cryptocurrency staged a recovery during the trading at the end of last week after selling activity led to lower corrections at the beginning of the same week. Bitcoin Cash retested the lows traded in June but bounced back up slightly above $670.

The recovery movements overcome the resistance at $700, however, BCH/USD lost its mojo around $730. Significantly, Bitcoin Cash price is changing hands at $724 while supported by the 38.2% Fib retracement level with the last swing high of $817.5 and a low of $655.50. As mentioned earlier, the trend is generally bearish, besides the MACD is advancing towards the negative region while the 100 SMA has crossed above the short-term 50 SMA to signal the presence of selling pressure.

The immediate resistance is at $730 while the key resistance stands at $740, at the same time, $760 is a key breakout point. If the buyers can breach and remain supported above $760, then retracing towards $800 will be well within sight in the medium-term. In the meantime, the buyers need to hold ground above $720 to avoid further declines in the short-term.

BCH/USD 1-hour chart