- Bitcoin Cash fails to hold above $250 and retreats to test support at $240.
- BCH/USD is facing a bearish situation brought about by the formation of a rising triangle pattern.
Bitcoin Cash is following closely in the footsteps of the granddaddy of cryptocurrencies Bitcoin (BTC). Just like BTC, BCH/USD was recently rejected from a key resistance zone at $255. The trading on Monday tried to keep Bitcoin above $250, however, the generally bearish cryptocurrency market paved the way for more losses towards $240. At the time of writing, BCH is teetering at $245 amid a bearish trend and expanding volatility.
Looking at the daily chart, Bitcoin Cash is holding onto an ascending trendline. Its immediate downside is also protected by the 50-day SMA. The trendline forms part of a rising triangle pattern. If Bitcoin Cash fails to break the pattern resistance at $270 then investors would have to brace for a selloff, targeting $200. Moreover, breaking above the triangle resistance will push Bitcoin in an area dominated by sellers between $270 and $300.
From a technical perspective, Bitcoin short term analysis has a bearish bias. The RSI has stalled in its recovery to the oversold. Downward movement hints that selling pressure is gaining traction. If support at $245 and $240 fails to hold, BCH/USD could nosedive to find lower support and create fresh demand from the investors waiting to buy low.