Breaking past the short-term resistance trendline, the BCH price struggles to find bullish momentum to prolong the breakout rally. Facing rejections from the overhead resistance at $228, the higher price rejections keep the breakout rally under the fence.
Moreover, a bearish pattern warns of Bitcoin Cash crashing under the 50-day EMA. Will Bitcoin Cash price manage to tap into the bullish trend momentum?
Moving sideways between the 50-day EMA and the overhead resistance at $228, the BCH price struggles to display a breakout rally. Moreover, the higher price rejection from the 38.20% Fibonacci retracement level warns of a downfall.
Despite the 18% jump a week prior to consolidation, the BCH price action shows a potential double top forming in the range. Trading at $208.84, the Bitcoin Cash price is struggling to sustain above the 50-day EMA. Further, the price action highlights a Doji candle formation.
Considering the uptrend fails to sustain above the 50-day EMA, the EMA may cut below the 200-day EMA, leading to a death cross.
Nevertheless, the intense bearish indications for BCH price align with the HODLers expecting a retest of the broken trendline. The retest phase will bring buying opportunities to those who missed the train.
Technical indicators:
RSI indicators: The daily RSI makes an arch below the overbought boundary to descend to the halfway line. This indicates a weakness in underlying bullishness.
MACD indicators: The declining histograms and the gap between MACD and signal lines warn of a bearish crossover.
Will Bitcoin Cash (BCH) Price Exceed $228?
From a technical standpoint, the short-term phase warns of a fall in Bitcoin Cash. However, the post-retest reversal in BCH price undermines the bearish signals and hints at a $228 breakout with a comeback. Further, the $228 breakout will push the Bitcoin Cash price to $300.
If BCH hits a snag at $228, it could drop to the 200-day EMA and test the support level around $180.
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