Bitcoin Cash Market Update: BCH/USD holds at $220, poised for a rally above $240

Bitcoin Cash epitomized impressive bullish performance on Thursday where the price action shot above $200 for the first time since the catastrophic drop last week. A weekly high has been formed at $239, making $240 an area of interest. At the time of writing, BCH/USD is doddering at $222 after selling pressure took over following the gap left by the bulls on hitting a wall at $240.

In spite of the drop, it is apparent that Bitcoin Cash is largely in the hands of the bulls. The RSI, for instance, is still holding the position above 70 in the 4-hour range. A leveling motion would signal that sideways trading could take center stage. The MACD in the same range also shows that buyers have more influence. A bullish divergence above the MACD emphasizes the presence of the bulls on the market.

Initial support holds the ground at $220 while $200 would try to stop losses into the $100’s range. To be on the safe side, buyers must strongly defend the $200 support area and pull BCH/USD above $240 (critical zone). Moreover, they must never lose sight of the psychological $300.

BCH/USD 4+-hour chart