Bitcoin Cash price analysis: Inverted head-and-shoulders pattern reaction still in play
- BCH/USD continued with the bearish momentum on Monday this week as the losses extended to $227.
- BCH/USD lost steam at $275 ahead of the correction that has dipped below the rising trendline.
Bitcoin Cash went up by 37% in April, although it has corrected lower 1.48% in the last seven days. The bearish pressure dominating the market last week had Bitcoin Cash explore the levels at $245. BCH/USD continued with the bearish momentum on Monday this week as the losses extended to $227 before correction to the upside began.
The bullish move from the lows mentioned failed to break above $240. The price then started to consolidate between a tight range ($231.62 - $240). This move completed the right shoulder of the inverted head-and-shoulders pattern. The bullish pressure on the market on Tuesday pulled Bitcoin Cash above the 100 Simple Moving Average (SMA) in turn paving the way for an engulfing candlestick that place price above $245 hurdle.
Bitcoin then curved its own path extending the gains past several resistance levels at $250, $255, and $270. While the Bulls battled to pull the price higher, BCH/USD lost steam at $275 ahead of the correction that has dipped below the rising trendline. At press time, Bitcoin Cash is trimming gains towards $260 but currently dances at $263.22. Marginally before this is the initial supported provided by the 100 SMA. The former resistance levels will also offer support in the event BCH/USD extends the losses in the coming sessions.
BCH/USD -minutes
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
