Bitcoin Cash (BCH) has recovered as it rebounded above the $500 support. Now the upward move is being threatened by the resistance at $900.
In the previous price action, Bitcoin Cash fell to the low at $500 and corrected upward to the $850 resistance zone. This compelled the altcoin to retest the previous support before resuming upward.
This will be the third time the resistance will be tested. BCH will rally above $1,000 if the initial resistance is breached. Incidentally, the altcoin will be out of downward correction if it rallies to $1,000 high. It will rise as the price is in the bullish trend zone. Conversely, if the bulls fail to break the initial resistance, the market will be compelled to a range-bound move between $500 and $850 for a few more days.
BCH is still below the 20% range of the daily stochastic but its bands are sloping upward. It indicates that buyers are emerging in the oversold region. The coin has risen to level 55 of the Relative Strength Index period 14. It indicates that the altcoin is in the uptrend zone and capable of rising on the upside. The 21-day and 50-day SMA are sloping downward indicating a downtrend but the moving averages are making an upward turn.
Major Resistance Levels – $1,800 and $2,000
Major Support Levels – $1,000 and $800
Bitcoin Cash is now in a bullish trend zone. Meanwhile, on May 25 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that BCH will rise to level 1.618 Fibonacci extension or level $979.30. From the price action, BCH is facing resistance at $850.
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.