Bitcoin Cash Price Analysis: Why this head-and-shoulders pattern is vital for the attack at $350?

Bitcoin Cash is in a bullish recovery phase after a gruesome dip to $300. Recovery has been lethargic but steady. On Thursday, BCH/USD is up 3.6% compared to Bitcoin (BTC)’s 1.98% and Ethereum (ETH)’s 1.46%.

The gains come after the formation of a head-and-shoulders pattern. Reaction to this pattern is likely to place Bitcoin Cash in the trajectory towards $350 and $400 respectively. In the meantime, BCH/USD is trading at $332 after reclaiming the support above $330.

Technical levels suggest that the bullish action could last throughout the European session. An up-trending RSI is almost crossing above the average (at 50). Further, advancement towards the overbought could encourage the bulls to increase their positions. The MACD also supports the bullish action as the signal line grinds into a bullish divergence.

Bitcoin Cash critical support and resistance areas

Resistance 1: $341 – Fibonacci 38.2% one-week.

Resistance two: $345 – Fibo 161.8% one-day.

Support one: $331 – Pivot point one-day resistance one.

Support two: $325 – Previous low 1-hour and the Bollinger Band 4-hour middle

BCH/USD daily chart