Bitcoin Cash (BCH) has resumed selling pressure after a week of range-bound movement between $1,300 and $1,600. The bears overwhelmed the bulls as they broke the $1,300 support.
The breakdown has caused the altcoin to decline to $827 at the time of writing. BCH is likely to further decline to a $700 low. In the previous price action, the bears have the upper hand as the price consolidated near the support level at $1,300 for over a week.
The breakdown continued to the low at $1,000. Buyers were able to hold the bearish momentum for three days before the bears resumed their onslaught. The current downtrend is approaching the low at $800. If the bears break the $800 support, BCH may find support above $700
BCH is at 32 of the Relative Strength Index period 14. It indicates that the altcoin is in the downtrend zone and it is approaching the oversold region of the market. The coin is also below the 20% range of the daily stochastic. It indicates that BCH price has fallen into the oversold region. The 21-day and 50-day SMA are sloping downward indicating a downtrend.
Major Resistance Levels – $1,800 and $2,000
Major Support Levels – $1,000 and $800
Bitcoin Cash is likely to continue the downward move. On May 13 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that BCH will fall to level 1.618 Fibonacci extension or level $815.41. From the price action, the market is retesting the 1.618 Fibonacci retracement level.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.