Since January 22, Bitcoin Cash (BCH) has fallen to a low of $265 as bulls bought the dips. For the past five days, the cryptocurrency has been trading in the oversold region of the market.
Today, the price of BCH is moving above the current support, while the market is reaching the high of $295. To sum up, BCH/USD is fluctuating between $261 and $300. On the upside, BCH will rise if buyers keep it above the $300 high, but will face another resistance at $405. A breakout above $405 will catapult BCH to a rally above the moving averages. If buyers are successful, the market will resume its upward momentum. Nevertheless, the current downturn has reached its bearish exhaustion. A further downward move is unlikely.
Bitcoin Cash indicator reading
Bitcoin Cash has fallen to level 25 of the Relative Strength Index for the period 14. This means that the cryptocurrency is trading in the oversold region of the market. Selling pressure will end, while buying pressure will resume. The bullish momentum has picked up again as the stochastic on the daily chart is above the 25% area. There are candlesticks with long extensions pointing to the current support. This means that there is strong buying pressure at the support level.
Technical Indicators
Key Resistance Zones: $800, $820, $840
Key Support Zones: $500, $480, $460
What is the next move for Bitcoin Cash?
Bitcoin Cash is trading in the lower area of the chart as the price resumes consolidation above the current support. Meanwhile, the price completed a downtrend on December 5. A retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that BCH will fall to the Fibonacci extension level of 1.272 or $274.92. The price action shows that the market is retesting the 1.272 Fibonacci extension while the altcoin is rising again.
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.
Source: https://coinidol.com/bitcoin-cash-405-high/