The price of Bitcoin Cash (BCH) is in a downward correction after rallying and getting stuck at the 50-day line SMA. Since July 13, BCH has been trading marginally as it crossed the 21-day line SMA but failed to break the 50-day line SMA.
Had the bulls broken the 50-day line SMA, BCH would have risen to the high of $207. However, BCH is down after the recent rejection. The cryptocurrency is likely to fluctuate between the moving average lines for a few more days. On the downside, BCH will fall above the 21-day line SMA. However, if the bears break below the 21-day SMA line, the altcoin will fall to the low of $96. Meanwhile, BCH is trading at $124.72 at the time of writing.
Bitcoin Cash indicator reading
BCH is at level 58 of the Relative Strength Index for period 14. The altcoin is in the bullish trend zone and is capable of further upward movement. The price bar of the cryptocurrency is above the 21-day line SMA, but below the 50-day line SMA, which indicates that the altcoin will be forced to move within a certain range. The altcoin is above the 80% range of the daily stochastic. This indicates that the BCH has reached the overbought area of the market. Sellers have emerged and are pushing prices down.
Technical Indicators:
Key Resistance Zones: $160, $180, $200
Key Support Zones: $120, $100, $80
What is the next direction for BCH?
Bitcoin Cash is still in an upward correction, but it is retreating after being rejected at the 50-day line SMA. The cryptocurrency will fluctuate between the moving average lines. The altcoin will develop a trend when the moving average lines are broken. For example, BCH will resume an uptrend when the 50-day line SMA is broken.
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-stuck-139/