Bitcoin Cash (BCH) is in a downtrend, but is making an upward correction. The price of the cryptocurrency has risen above the moving average lines. However, the cryptocurrency is stuck below the 50-day line SMA.
The altcoin is on the retreat as it faces rejection at the $116 high. Further upside is doubtful as the market is reaching the overbought zone. If the market falls back above the 21-day line SMA, the cryptocurrency price would be forced to move in an area between the moving average lines. On the other hand, the downtrend will resume if the price falls below the 21-day SMA line. In other words, BCH will fall back to the previous low at $101.
Bitcoin Cash indicator reading
The BCH Relative Strength Index for the 14 period has risen to the 53 level as it has risen above the moving average lines. Since the price bars for the cryptocurrency are between the moving average lines, BCH will be forced to move within a range. Bitcoin Cash is experiencing bearish momentum as it is below the 80% area of the daily stochastics.
Technical indicators
Key Resistance Zones: $160, $180, $200
Key Support Zones: $120, $100, $80
What is the next direction for BCH?
BCH/USD is in an uptrend as the price has risen above the moving average lines. The uptrend has ended as the altcoin has reached the overbought zone. The cryptocurrency will continue a new uptrend as it pulls back above the moving average lines. The cryptocurrency is holding above the $114 support.
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 in funds.
Source: https://coinidol.com/bitcoin-cash-resistance-116/