Nathan BatchelorBitcoin Cash suffered a heavy technical correction over the weekend, with the BCH/USD pair sliding lower by over 20 per cent.
Bitcoin Cash price analysis shows that the cryptocurrency could fall towards the $325.00, and possibly the $250.00 support level as the downside correction gathers pace.
Bitcoin Cash medium-term price trend
Bitcoin Cash recently found strong technical resistance from just below the $500.00 level, following a huge breakout above the $400.00 level earlier this month.
The cryptocurrency lost over 20 per cent in value, as the altcoin space incurred a broad-based technical sell-off over the weekend.
Bitcoin Cash technical analysis shows that the cryptocurrency could fall towards the $250.00 if sellers trigger a large head-and-shoulders pattern.
The daily time frame shows the neckline of the pattern is located around the $370.00 level and has a downside projection of over $120.00.
More conservative traders may wait for the BCH/USD pair to settle below the $370.00 level before initiating fresh short positions.
Bitcoin Cash short-term price trend
Bitcoin Cash technical analysis over the short term shows that the cryptocurrency is only bullish while price trades above the $420.00 level.
The thirty-minute time frame shows that a bearish head-and-shoulders pattern is currently playing out to the downside.
The size of the pattern indicates that a decline towards the $325.00 level is entirely possible over the short term.
Any corrective moves back towards the neckline of the pattern around the $420.00 level are likely to be used as a selling opportunity.
This scenario currently appears more likely, as technical indicators on the lower time frames show that the BCH/USD pair is extremely oversold and could correct higher at any moment.
Bitcoin Cash technical summary
Bitcoin Cash technical analysis indicates that the cryptocurrency could fall towards the $250.00 support level. Any moves back towards the $420.00 level are likely to be seen as a selling opportunity.
