Bitcoin Cash (BCH) is moving sideways after the May 12 plunge. The upward correction was like a price spike that reached $240 resistance and retraced.
The May 10 upward correction was staved off at the $240 resistance. Today, BCH is trading at $192 at the time of writing. The cryptocurrency is also consolidating above $180 support.
Since May 19, price action has been characterized by small, indecisive candlesticks. These doji candlesticks converge above the $180 support for a possible breakout. On the upside, a price rally will catapult the altcoin above the $240 resistance. Bullish momentum will extend to the $300 high. On the downside, if the bears break below $180 support, the market will revisit the previous low at $150.
BCH is at level 36 of the Relative Strength Index for the period 14. The altcoin is in the downtrend zone and can fall. The price bars of the cryptocurrency are below the moving averages, indicating further downward movement. BCH is above the 40% area of the daily stochastic. This indicates that the altcoin is in a bullish momentum. The 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend.
Key Resistance Zones: $800, $820, $840
Key Support Zones: $400, $380, $360
Bitcoin Cash is in a sideways movement as the price consolidates above the $180 support. BCH will fall if the current support is broken. Meanwhile, on May 11 downtrend, a retraced candlestick body tested the 78.6% Fibonacci retracement level. The retracement suggests that BCH will fall to the 1.272 Fibonacci Extension level or $146.80.
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 funds.