- Bitcoin Cash attempt to crypto out of the rabbit hole is facing resistance at $230.
- Potential for growth above the short-term resistance hurdles remains high amid an improving positive picture.
Bitcoin Cash has become the sort of asset to gloriously rise to stardom and a few months later plunge right back at the bottom. In other words, the distance between the ‘rags’ and the ‘riches’ is not too wide for BCH. The recent slump into the ‘rags’ around $215 from the highs around $334 took the cryptoasset less than seven days.
The double-cross of the simple moving averages whereby the 50 SMA on the two-hour chart crossed below the longer-term 100 SMA at $312 suggests that a lower consolidation should be expected in the near-term. BCH/USD appears to have cushioned the drop by finding balance at $215. However, recovery is unable to penetrate $230 (seller congestion zone).
For now, the price is holding ground above $220 with a high potential pushing against the short-term resistance areas. The relative strength index shows an asset eager to leave the oversold conditions. At the same time, the moving average convergence divergence upwards correction is a key indicating of developing bullish momentum. The positive divergence reflects the intent the bulls have to regain control over the price.