Bitcoin Cash price analysis: $220.00 breakout level
Bitcoin Cash price analysis highlights that a bearish head and shoulders pattern is warning of a possible decline towards the $100.00 level. Bulls need to break above the $220.00 level to encourage short-term buying
Bitcoin Cash is attempting to recover higher alongside the broader cryptocurrency market on Tuesday, after coming under minor downside pressure over the weekend.
Bitcoin Cash price analysis shows that a major short-term breakout could take place if buyers can hold the price above the $220.00 level.
Bitcoin Cash medium-term price trend
Bitcoin Cash remains bearish over the medium term while the price trades below its key 200-day moving average, around the $270.00 level.
Bitcoin Cash technical analysis continues to show a large head-and-shoulders pattern that has yet to reach its full downside potential.
The neckline of the mentioned bullish pattern is located around the $300.00 level, and continues to imply a coming drop towards the $100.00 level.
Failure to rally the price above the $300.00 level over the medium term increases the chances that the bearish pattern will play out to its full downside potential.
To the downside, a breach of the $200.00 level should see the $180.00 level tested, with the $140.00 level the next major bearish target.
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Bitcoin Cash short-term price trend
Bitcoin Cash technical analysis shows that the cryptocurrency is bullish over the short term while the price trades above the $250.00 level.
The four-hour time frame continues to show that the BCH/USD pair is working within a large triangle pattern.
A breakout above the $220.00 level would provoke a bullish breakout, which could propel the BCH/USD pair towards the $270.00 level.
Looking at the downside potential of the pattern, a break below the $175.00 level is currently needed to trigger a bearish breakout from the triangle.
Bitcoin Cash technical summary
Bitcoin Cash technical analysis shows that a bullish breakout from a triangle pattern will occur if buyers can anchor the price above the $220.00 level. A move under the $200.00 could see the $175.00 level tested.