- Bitcoin Cash breaks out above a descending trendline; paving the way for gains targeting $260 and $300.
- The prevailing technical picture place bulls at the helm of the price action but can they clear the hurdle at $260.
Bitcoin Cash is flying the bullish flag pattern high in the vast cryptocurrency universe following a breakout above a descending trendline. The goal among the bulls is to clear the resistance at $260 and pave the way for gains towards the psychological $300. The price is teetering at $257 at the time of writing following more than 1.5% growth on the day. Its trend remains bullish but the shrinking volatility suggests rapid price action could be sabotaged.
As Bitcoin Cash spiked from $245 (opening value) to highs close to $260, Bitcoin is dealing with increased selling activity after failing to contain gains above $9,800. An intraday high has been reached at $9,818 and on the downside $9,739 is the intraday low. BTC/USD is trading at $9,772 compared to the opening value of $9,779.
Bitcoin Cash technical picture
If Bitcoin Cash fails to break the seller congestion zone at $260, expect a reversal to take effect towards $255 (initial support). However, for now, the buyers will remain in control of the price as observed from the RSI and the MACD. The RSI is holding the ground above 70 (overbought region) while the MACD features a bullish divergence in support of the ongoing price action. Other support areas under $255 include the 200 SMA, 50 SMA and the key support range between $245 and $250.