- Bitcoin Cash bulls have their eyes on $230 but first, they have to deal with resistance at the 50 SMA.
- BCH/USD must hold above the channel support to avert possible losses to lower support areas at $216 and $205.
Bitcoin Cash recently made an attempt at breaking above ascending channel resistance. However, the move turned out a false breakout with the price hitting a wall at $228. A reversal ensued where BCH dived back into the channel before finding support at $222 aided by the channel support.
Meanwhile, buyers have not given up on the fight for gains above $230. BCH/USD has advanced upwards but seems to have hit another snag at the 50 SMA in the hourly range. BCH/USD is teetering at $223 at the time of writing.
The seller congestion at the moving average is unlikely to give way in the near term. Instead, the path of least resistance is to the south, especially with the RSI reversing below the average (50). In other words, the trend is not in favor of bulls. The bearish picture is emphasized by the MACD horizontal motion in the negative region.
It is vital that buyers hold above $222 and the channel support as if their lives depend on it. This is because a break below the channel support is likely to call for more entries from the sellers, further pushing Bitcoin Cash below $220. Other support areas towards $200 include $216 and $210.