Bitcoin Cash (BCH) price is in a downward correction as the cryptocurrency asset is holding above the $280 support. BCH has resumed its upward movement after the altcoin retested the previous low at $280.
Since January 22, buyers have successfully defended the $280 support while the market continues to fluctuate between the $280 and $340 levels. However, the bulls have failed to keep the price above the moving averages, resulting in a downward correction.
On the other hand, the bears have been selling every time the price rallies, forcing BCH into a trading range.
Today, BCH is trading at $303 at press time. The bulls are trying to break out above the moving averages. The upward momentum will continue if the bulls break out above the moving averages. Conversely, the downward correction will begin if the altcoin is rejected at the recent high.
BCH is at level 49 of the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. The cryptocurrency is in the uptrend zone when the price breaks above the moving averages. BCH is above the 50% area of the daily stochastic. This indicates that the market is in a bullish momentum.
Key resistance zones: $800, $820, $840
Key support zones: $400, $380, $360
Bitcoin Cash was in a downtrend, but the downtrend has reached its bearish exhaustion. Selling pressure eased on January 22, when the altcoin fell to a low of $265. Meanwhile, on December 4, the downtrend; a retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that BCH will fall to the 1.272 Fibonacci extension level or $276.62.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.