Bitcoin Cash Is Unable to Sustain Above $620, May Resume Downward Correction

The price of Bitcoin Cash (BCH) is on the retreat again after retesting resistance at $640. Today, the market has dropped to the low of $572 and further downside is likely. Over the past week, BCH has settled between the 21-day line SMA and the 50-day line SMA.

Nevertheless, BCH is falling and if the price breaks below the 21-day line SMA, the altcoin will continue to fall. BCH/USD will hit the lows of either $510 or $490. Conversely, if the price retraces and finds support above the 21-day line SMA, this will signal the resumption of the uptrend. This would invalidate the bearish scenario. Meanwhile, BCH is trading at $572 at the time of writing.

Bitcoin Cash indicator reading

The 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend. BCH is at the 48 level of the Relative Strength Index of period 14, which means that BCH is in the downtrend zone and can fall downwards. The cryptocurrency is below the 40% area of the daily stochastic. The market has resumed its bearish momentum and is in the oversold zone of the market.

Key Resistance Zones: $800, $820, $840

Key Support Zones: $500, $480, $460

What is the next move for Bitcoin Cash?

BCH/USD is in a downtrend as the bears break the previous low at $570. Selling pressure is likely to intensify beyond the previous low. Meanwhile, the downtrend from October 11 has tested the 38.2% Fibonacci retracement level. The retracement suggests that BCH is likely to fall to the 2.618 Fibonacci extension or to the $496.62 level.  

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.

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