- The No. 5 cryptocurrency stalls two-day recovery momentum.
- BCH/USD - the main laggard among top 5 dominant cryptocurrencies.
Bitcoin Cash (BCH/USD) hit fresh seven-week highs in the overnight trades and since then has entered a phase of upside consolidation above the 222 handle. With the retracement, the price has stalled its two straight days of recovery, as the bulls catch a breath before the next leg higher. The world’s fifth-most favorite digital asset, currently, trades close to the 224 level amid the weekend love prevalent across the crypto space. The coin posts small losses so far this Sunday, although it gains 0.50% over the last 24 hours. The market capitalization for BCH/USD stands at $4.10 billion.
BCH/USD daily chart
An inverse head and shoulders pattern was confirmed on the daily sticks last Friday after the price broke above the neckline placed near 213 levels. The pattern is usually seen as a bullish reversal after the BCH bulls staged a solid comeback from weekly lows of 191.77. Given the pattern validation, the No. 5 coin remains on track to conquer the pattern target of 262.95 over the coming weeks.
However, ahead of the aforementioned target, the bulls need to clear the immediate resistance aligned at the horizontal 100-day Simple Moving Average (DMA), now at 229.61. Only a daily closing above the last would give the much-needed impetus to the buyers, in order to extend the bullish momentum in the near-term.
A failure to take out the 100-DMA hurdle, the sellers could regain control knocking-off the rates back to the now resistance-turned-support of the pattern neckline. The next support awaits at the bearish 50-DMA of 209.35, which could slow the pace of declines. Meanwhile, the horizontal 21-DMA support at 198.50 is the key level to beat for the bears further south.
BCH/USD Levels to watch
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