Bitcoin Cash (BCH) is in a downtrend to the $387 low as the bears broke the previous low at $467. BCH fell to the current low and pulled back, showing a long candlestick tail. The long tail describes strong buying pressure above current support. This price action prompted the bulls to buy the dips.
The cryptocurrency resumes its uptrend and will try to break out above the $467 price level. If the buyers are successful, the market will rise to retest the $560 high. The uptrend will resume. However, if the upward move is rebuffed, BCH will fall below the previous low and resume trading in a range. Currently, BCH is trading at $476.43 at the time of writing.
Bitcoin Cash indicator reading
Bitcoin Cash has fallen to the 34 level on the Relative Strength Index for period 14. The altcoin is approaching the oversold area of the market. BCH is above the 80% area of the daily stochastic. This indicates that the market is in a bearish momentum. The 21-day and 50-day SMAs are sloping downward, indicating a downtrend.
Major Resistance Levels – $1,800 and $2,000
Major Support Levels – $600 and $400
What is the next move for Bitcoin Cash?
Bitcoin Cash is in an upward movement. The upward movement is likely to face some resistance. Meanwhile, on June 22 uptrend; a retraced candlestick body tested the 78.6% Fibonacci retracement level. The retracement indicates that BCH will rise and reverse at the 1,272 Fibonacci extension or $471.08 level. Currently, the cryptocurrency is retesting the 1,272 Fibonacci extension.
Disclaimer. This analysis and forecast are the personal opinions of the author and are 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.
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