Bitcoin cash is seeing strong dip-buying again, after its recent sharp pullback from the $400 resistance level.
Bitcoin cash technical analysis shows sellers need to break the $330 support level to accelerate the downside potential in the BCH/USD pair.
Bitcoin cash medium-term price trend
Bitcoin cash price analysis shows the cryptocurrency is technically bullish while trading above $270.
In a positive development, the BCH/USD pair have spent a week above the trend- defining 200-day moving average.
Bitcoin cash currently lacks a clear direction after its sharp pullback from the $400 resistance. After cecent downside attacks, the price is now anchored around the $350 level.
The daily time frame shows that sellers need to hold the BCH/USD pair below $330 to gain downside momentum towards the $300 level.
Overall, the daily time frame looks bullish, with the recent rally helping to form a large inverted head and shoulders pattern.
The neckline of the bullish reversal pattern is around $360. The overall size of the pattern shows that Bitcoin cash could rally towards the $500 level.
Bitcoin cash short-term price trend
Bitcoin cash technical analysis in the short term shows that the cryptocurrency is bullish when price trades above $245.
The four-hour time frame highlights a bearish head-and-shoulders pattern, with the $320 level the key area to watch.
The size of the pattern shows that a short-term drop towards $250 is possible, although a drop towards the $280 level appears more likely at present.
Key moving averages on the four-hour time show that selling pressure will increase in the short-term if price moves below $335.
Gains above $350 could prompt a rally towards $380 before a drop towards the $300 level sets in.
Overall, the bearish reversal pattern seems to indicate that short-term weakness will return if the price crosses under the $330-320 technical region.
Bitcoin Cash technical summary
Bitcoin Cash technical analysis could start to come under downside pressure in the short term if the $330 support level is overcome. However, dip-buyers are expected to come in under the $300 level.
