The price of Bitcoin Cash (BCH) is in a downtrend after falling past the previous lows of January 2022. Currently, it has fallen to the low of $210 and has recovered. The current decline has reached the oversold area of the market.
Nonetheless, BCH is making an upward correction to the previous highs. Buyers are likely to be rejected at the $290 and $350 resistance levels.
The current downtrend is due to the rejection at the $290 resistance. The high at $290 was the previous support level from April 11. If the bulls break the $290 resistance, BCH will rise above the moving averages. The cryptocurrency will rise and reach the highs of $350 and $387 again. However, if the altcoin turns away from the $290 resistance, BCH will fall and revisit the previous low at $210. A break below the $210 support would signal the resumption of the downtrend.
Bitcoin Cash indicator reading
BCH has fallen to level 25 on the Relative Strength Index for the 14 period. BCH has fallen into oversold territory in the market. Recently, buyers have been showing up to push prices higher. BCH is now at level 35 of the RSI for period 14. BCH is above the 25% area of the daily stochastic. This indicates that the altcoin has resumed its bullish momentum. The 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend.
Technical Indicators:
Key Resistance Zones: $800, $820, $840
Key Support Zones: $400, $380, $360
What is the next move for Bitcoin Cash?
Bitcoin Cash is in a downtrend and selling pressure has eased after the drop to the $210 low. Meanwhile, on April 11, the downtrend has seen a retraced candlestick testing the 50% Fibonacci retracement level. The retracement suggests that BCH will fall to the 2.0 Fibonacci extension level or $198.55. BCH is retesting and approaching the 2.0 Fibonacci extension.
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-downtrend-subsides/