Bitcoin Cash has been rallying sharply without any technical pullbacks, following its recent breakout above the $400.00 level.
Bitcoin Cash technical analysis shows that the cryptocurrency is still likely to experience a strong pullback from either the $460.00 or $500.00 resistance areas.
Bitcoin Cash medium-term price trend
Bitcoin Cash has been one of the top performing cryptos this month, with the BCH/USD pair trading higher by around 20 per cent on the month.
The cryptocurrency has also gained over 150 per cent since the start of the year, as medium-term bulls take back control of the BCH/USD pair.
Bitcoin Cash price analysis shows that the cryptocurrency is likely to face stiff resistance from the $500.00 level if the $460.00 level is surpassed.
The daily time frame shows that negative RSI divergence is present, with the divergence extending down towards $400.00.
Technical failure around the $500.00 would help to complete a huge reversal pattern on the daily time.
Bitcoin Cash short-term price trend
Bitcoin Cash technical analysis over the short term shows that the cryptocurrency is extremely bullish while price trades above the $350.00 level.
The four-hour time frame shows that a bullish inverted head and shoulders pattern is currently playing out to the upside, and has not yet met its full upside objective.
The size of the pattern indicates that a rally towards the $500.00 level is entirely possible over the short term.
Bitcoin Cash technical summary
Bitcoin Cash technical analysis indicates that the cryptocurrency is likely to find strong resistance from either the $460.00 or $500.00 level. Watch out for a strong pullback towards the $400.00 level in the near-term.
