Bitcoin Cash (BCH) is in a downtrend as the altcoin fell to a low of $111 on August 28.
In the last three days, the downtrend has eased as the market has reached the oversold zone. The cryptocurrency is trading above the $110 support. The current support is the historical price level or resistance from July 10.
In July, buyers broke through the resistance level as BCH rallied to the upper resistance of $164. On the downside, selling pressure has reached bearish exhaustion as the market has reached oversold territory. A further decline is doubtful as the cryptocurrency is consolidating above the current support. On the other hand, the cryptocurrency will continue its movement between $110 and $140 if the current support holds.
BCH is at level 40 of Relative Strength for the period 14. It is in a downtrend as it fluctuates above the $110 support. The price bars are below the moving average lines causing the altcoin to decline. The cryptocurrency is below the 20% area of the daily stochastic. This indicates that the market has reached the oversold area. The current decline could weaken if buyers show up in the oversold region.
Key Resistance Zones: $130 and $150
Key Support Zones: $120 and $100
Bitcoin Cash is fluctuating above the $110 support as the market reaches bearish exhaustion. The price indicator shows that BCH is likely to reverse at the current support. On the downside on August 2, a retraced candlestick tested the 61.8% Fibonacci retracement level. The retracement suggests that BCH will fall but reverse at the 1.618 Fibonacci extension level or $110.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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 in funds.