The price of Bitcoin Cash (BCH) is in a downward correction as the altcoin fluctuates between $360 and $390. Incidentally, support at $360 is the previous low of the December 4 price drop.
During the December 4 slump, bulls bought the dips as the price corrected to the $480 high. The cryptocurrency was in a fluctuation range between the prices of $430 and $480. On December 27, the bulls tested the resistance zone of $480 again, which led to another downward movement. BCH dropped to the previous low of $360 and continued to move within the trading range. BCH/USD is trading in the oversold zone of the market. If the current support holds, the uptrend will resume. Otherwise, the downward correction will continue.
Bitcoin Cash indicator reading
Bitcoin Cash is at level 34 of the Relative Strength Index for period 14. BCH is in the downtrend zone and below the centre line 50. BCH price bars are below the 21-day line and the 50-day moving averages line, indicating a possible decline. BCH is below the 20% area of the daily stochastic. The cryptocurrency is in the oversold region of the market.
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 in a downward correction. The cryptocurrency value is moving in a range between $360 and $390. The altcoin will continue its trend if the fluctuation ranges are broken. Buyers have the advantage as the market has reached the oversold zone.
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-bullish-expectation/