Bitcoin Cash price analysis: BCH/USD stuck between the SMA support and resistance
- Bitcoin Cash recovered from Thursday low at $214 but the upside is capped at $220.
- The formation of a rising wedge pattern risks breakdown with BCH targeting lows under $214.
The cryptocurrency market is mixed red and green on Friday towards the end of the European session. Bitcoin Cash is among the assets that are yet to recover from the slump witnessed on Thursday. BCH/USD extended the bearish leg below $2220. The bears swung into action forcing the price to revisit lows around $214.
The prevailing trend is strongly bearish, although the volatility is low. Bitcoin Cash upside is capped under the 38.2% Fibonacci retracement level taken from the last swing high of $231.14 to a swing low of $214.01. Also limiting movement is the 100 Simple Moving Average on the one-hour chart currently at $221.91.
On the downside, the 50 SMA is in line to prevent bears from causing more damage as they did yesterday. The 23.6% Fibo above $218 will also try to offer support. The recent low at $214 is now working as a key support.
It is important that BCH bulls force a recovery above $220 and push towards $225 and $230. However, as it stands, the possibility of a breakdown under $214 is high because of the formation of a rising wedge pattern. The pattern support is on the verge of giving in to the pressure.
BCH/USD one –hour chart
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Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
