The price of Bitcoin Cash (BCH) is in a downward correction as the altcoin has regained the previous low of $97. The upward correction from July 8 was repelled by the 21-day line SMA. The cryptocurrency fell to the previous low of June 30, which is the $97.32 support.
The cryptocurrency price is again testing the current support at $97. On the downside, BCH will continue to fall if the current support is broken. However, further downside is doubtful as the market has reached the oversold zone. On the upside, the market will rally above the moving average lines if the current support holds and BCH rallies. Bullish momentum will extend to the high at $180. In the meantime, BCH fluctuates above $97 support.
Bitcoin Cash indicator reading
BCH is at level 32 of the Relative Strength Index for period 14. The cryptocurrency is in the downtrend zone and approaching the oversold area of the market. Since April 11, the cryptocurrency’s price bars have been below the moving average lines, indicating a possible decline in the cryptocurrency. The altcoin will trend upwards if the price bars stay above the moving average lines. The altcoin is below the 20% area of the daily stochastic. This means that the altcoin has reached the oversold area. The selling pressure is likely to stop.
Technical Indicators:
Key Resistance Zones: $160, $180, $200
Key Support Zones: $120, $100, $80
What is the next direction for BCH?
Bitcoin Cash downtrend has eased after the June 16 price drop. The altcoin has consolidated at the bottom of the chart. The price action is characterized by small indecisive candles, known as doji. These doji candlesticks are responsible for the slow price movement. The doji candles indicate that buyers and sellers are undecided about the next move.
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-pauses-97/