Bitcoin Cash is gaining more momentum after its move past the 100 SMA dynamic inflection point. Price has also broken past the descending trend line on the 4-hour chart and a nearby area of interest to confirm that a reversal is taking place.

The 100 SMA is still below the longer-term 200 SMA, though, so the path of least resistance is to the downside. In other words, the selloff is still more likely to resume than to reverse.

In addition, RSI is in the overbought region to signal exhaustion among buyers and turning lower could indicate that sellers are regaining the upper hand. Similarly stochastic is in the overbought zone and may also be looking to turn lower to signal a return in selling pressure. In that case, a pullback to previously broken resistance levels could be in the works.

In particular, Bitcoin Cash might still retreat to the 100 SMA dynamic inflection point that lines up with the former trend line around $90. There might also be significant support at the $100 major psychological level.

If the rally keeps up, the next area of interest might be the former support around $160-165 that is also close to the 200 SMA dynamic inflection point.

Cryptocurrencies have been able to stay in the green for the past couple of trading days, possibly encouraging even more buyers to reopen their positions now that the “crypto winter” might have thawed.

There is also increased coverage on how the coins may have bottomed out and, in a sentiment-driven market, this tends to push price in a particular direction. To top it off, the selloff in traditional markets like stocks and commodities owing to geopolitical risks might also be drawing traders towards alternative holdings like cryptocurrencies.

For Bitcoin Cash itself, there appears to be a bit more clarity on which version has won out, so it could be poised to erase the losses spurred by the hard fork uncertainty.

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