Bitcoin Cash Market Update: BTC/USD bulls engage the throttles after defending $300 support

Bitcoin Cash attempts to lead a recovery in a bear seized market.
The formation of a falling wedge pattern is a key indicator of the reversal in the near term.

Bitcoin Cash is the only major cryptocurrency in the green on Thursday as the Asian session makes way for the European session. The 1.45% gain on the day is a drop in sea compared to the freefall experienced in the last 24 hours when BCH/USD dropped from highs around $333 to $302 (weekly low). Bulls managed to defend the support at $300, however, the upside has been limited at $330.

The price is teetering at $321 at the time of writing amid signals of possible recovery. The Relative Strength Index (RSI) has exited the oversold in the hourly timeframe but appears to stall at 50. Further movement above the average and towards 70 could pave the way for more action above $330 heading to $350.

Another bullish signal comes from the Moving Average Convergence Divergence (MACD) currently making its way towards the mean line (0.00). A bullish divergence suggests that the bulls are having an upper hand against the bears. However, one cannot ignore the wide gap between the 50 Simple Moving Average (SMA) and the 100 SMA on the 1-hour chart which shows that selling pressure is not entirely ousted.

In the medium-term, a breakout could be possible due to the formation of a falling wedge pattern. A break above the pattern’s resistance trendline would boost BCH above $350 as long as the focus on $400 is not lost.

BCH/USD hourly chart

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