- Bitcoin Cash price technical picture is positive but buyers lack the energy and catalyst to sustain gains towards $250 and $300 respectively.
- The bearish flag pattern danger of breakdown still lingers with BCH/USD likely to test $200 and $150 support levels.
Bitcoin Cash is strongly nurturing a bullish momentum on Friday. The Asian session has been kinder to Bitcoin Cash as compared to other major cryptocurrencies. Bitcoin Cash is trading at $232 after growing by 1.3% on the day. Marginally downwards, is the initial support provided by the 23.6% Fibo of the last swing high to $499 and a swing low at $135.
A bearish flag pattern support is also in line to provide support, however, if the buyers slip up and the support is shattered, BCH/USD could continue with the devastating fall back to levels at $200. Note that the massive dip a couple of weeks ago forced Bitcoin Cash under $150 only for it to find support at $135.
On the upside, the resistance at $250 must come down in order to pave the way for more gains while allowing the buyers to shift their focus to $300. Meanwhile, the path of least resistance is sideways based on the ranging MACD at +3.6. Buyers are relatively in control as observed with the up-trending RSI. It is clear that the bullish momentum lacks the strength and catalyst to tackle and defend higher support areas above $250.
BCH/USD 2-hour chart
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