Following the most dramatical price up move of Bitcoin, Bitcoin Cash (BCH) has taken its upside move and reaches $306 on January 3, 2021.
Since November 24, BCH has ranged between $250 and $380 price levels. Each time the bulls retest the $380 overhead resistance; BCH will fall and resume a sideways move within the price range. On December 28, BCH retested the $380 overhead resistance and was resisted. The price fell below the $360 support, and a further downward movement is expected. This has been the price action for over one month.
Now, the bullish scenario is that if the bulls break the $380 overhead resistance, BCH will resume an upward move. The market will rise to $430 high and later above $500. However, if the bullish scenario fails, the altcoin will continue its range bound movement between the established levels.
Bitcoin Cash is at level 57 of the Relative Strength Index period 14. The coin is in the uptrend zone and above the centerline 50. The price is falling and a break below the SMAs will compel the coin to further depreciate to the lower price range.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
Bitcoin Cash is likely to move up but will reverse at a recent high. On December 28 uptrend; the retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that BCH is likely to rise to level 1.272 Fibonacci extensions. In other words, BCH will rise to a high of $404.14 and later reverse. The reversal will not be immediate. The coin will reverse to the 78.6% Fibonacci retracement level where it originated.
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.