On September 1 uptrend, buyers failed to sustain Bitcoin Cash (BCH) above the $300 resistance. The overwhelming selling pressure broke the $280 support and BCH fell to $203 low.
Later, the price was corrected upward above $220. Nevertheless, the selling pressure may have reached bearish exhaustion but the coin may revisit the $200 support level.
Today, September 4, BCH is trading at $222 at the time of writing. The market is still showing bearish signals. On the downside, sellers may attempt to push the coin to the crucial support at $200. Meanwhile, buyers have an uphill task to push the coin to the previous highs. The bulls have to buy the dips to resume an upward move. If buyers pushed the coin above the EMAs or the $280 support, upside momentum will resume. Meanwhile, BCH is falling and approaching the $200 low.
Bitcoin Cash is in a descending channel. The downward movement will resume if price breaks and closes below the support line of the descending channel. BCH is below the 30% range of the daily stochastic. It indicates that the coin is in a bearish momentum and approaching the oversold region.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
The selling pressure has reached bearish exhaustion as price falls to consolidate above $200 support. On the August 27 downtrend, BCH fell to $260, and the retraced candle body tested the 61.8 % Fibonacci retracement level. This implies that BCH will fall to the 1.618 extension level. This has been fulfilled. There is a likelihood for BCH price to decline further.
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.