Since November 18, Bitcoin Cash (BCH) plunged to a low of $540 and continued its sideways movement above current support. Last week, BCH traded in a narrow range between $540 and $600.
The bulls and bears retested the range but were unable to break it. For example, if buyers break through resistance at $600, bullish momentum is likely to spread across the moving averages. If buyers manage to break above the moving averages, it will be a sign that the uptrend is resuming. BCH will rise and regain the previous highs of $630 and $670. On the other hand, if the bears break the support at $540, the market will fall back to the previous low at $480.
Bitcoin Cash indicator reading
The cryptocurrency is at the 45 level of the Relative Strength Index for the 14 period. BCH is rising, but is in the downtrend zone and below the 50 midline. The cryptocurrency price is still below the moving averages of the 21-day line and the 50-day line, indicating further downward movement. Nevertheless, BCH is above the 80% area of the daily stochastic. This suggests that the market is approaching overbought territory.
Key Resistance Zones: $800, $820, $840
Key Support Zones: $500, $480, $460
What is the next move for Bitcoin Cash?
Bitcoin Cash is in a downtrend but consolidating above $540 support. If sellers break the current support, the market will fall to the low of $533. Meanwhile, a downtrend started on November 18. A retracement candlestick has tested the 78.6% Fibonacci retracement level. This retracement suggests that BCH will fall to the 1,272 Fibonacci Extension level or $506.35.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
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