Bitcoin Cash Price Update: BCH/USD in retreat after gaining 7% in a matter of minutes

BCH/USD sharply recovered from the intraday low.
The resistance of $240.00 stopped the upside correction.

Tanya Abrosimova Independent Analyst

Bitcoin Cash (BCH) is still in a red zone on a day-to-day basis; however, the coin recovered strongly from the intraday low of $232.60 and hit $240.00 in a matter of minutes. At the time of writing, BCH/USD is changing hands at $237.00. Despite the retreat, the short-term trend is still bullish, while the volatility is expanding. Bitcoin Cash is the fifth-largest digital asset with the current market capitalization of $4.4 billion. An average daily trading volume is registered at $1.22 billion.

BCH/USD: The technical picture

As we have previously reported, Bitcoin Cash lost momentum on approach to the $243.50 resistance level. This barrier attracted new sellers on Thursday and triggered the downside correction that culminated in the move to the intraday low of $232.60. Another bullish wave took the price towards $240.00 reinforced by 1-hour SMA50, but the upside proved to be unsustainable at this stage. The price failed to settle above 1-hour SMA100 (currently at $238.80), which means BCH may enter a range-bound phase.

On the downside, the initial support comes at $236.60 (the middle line of the 1-hour Bollinger Band), followed by the above-mentioned intraday low and the psychological $230.00. On the upside, a sustainable move above $140.00 will bring $243.50 back in focus, followed by the upper line of the previous consolidation channel at $245.50.