Bitcoin Cash (BCH) is rallying after falling to a low of $632. Today, August 18, bullish candlesticks suggest a possible reversal of the downtrend.
The downtrend was triggered when BCH reached the overbought area of the market. Sellers emerged when the cryptocurrency fell from $715 to $632. Currently, the downtrend has subsided with the appearance of a candle with a long tail. The candle tail points to the current support, indicating that there is strong buying pressure above the $632 support.
This will prompt the cryptocurrency to resume its uptrend. If BCH rises and breaks through the $715 resistance, the altcoin will go up to $885. The upside scenario is possible if the current resistance is broken. On the other hand, if the buyers fail to break the current resistance, the altcoin will fluctuate between $630 and $715.
Meanwhile, BCH /USD has resumed a new uptrend as the altcoin finds support above $632.
BCH price is heading back to the support line of the ascending channel. The altcoin is rising as it retests the support line. The cryptocurrency will face selling pressure again if the price falls below the support line. After the recent retracement, the altcoin is at level 60 of the Relative Strength Index of period 14. The cryptocurrency is still in an uptrend and is capable of rising to the upside.
Major Resistance Levels - $1,800 and $2,000
Major Support Levels - $600 and $400
Bitcoin Cash is expected to rise after the recent rejection. Meanwhile, on August 17 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that BCH will fall to the level of 1.618 Fibonacci extensions or to $624.77. Price action shows that BCH fell to a low of $632 and then resumed an uptrend.
Disclaimer. This analysis and forecast are the personal opinions of the author are t 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.