Bitcoin Cash Faces Rejection at $650 High, Resumes Selling Pressure

Today, the price of Bitcoin Cash (BCH) broke below the moving averages as the altcoin hit the low of $533 and retreated. With the price breaking below the moving averages, the selling pressure is likely to continue downwards.

In the previous price action, BCH rose to the high of $650 but failed to break above it. The downtrend continues after a second attempt at the resistance zone. Today, the cryptocurrency is moving above the support at $560 after the recent breakout. If the bears break the current support, the altcoin will fall back to the previous low at $480. On the other hand, the cryptocurrency will start a new uptrend if the current support holds.

Bitcoin Cash indicator reading

The cryptocurrency has fallen to the 40 level of the Relative Strength Index of period 14. This indicates that BCH is in the downtrend zone and is capable of further downward movement. The price of BCH is now below the 21-day line SMA and the 50-day line SMA, indicating a possible price decline. The altcoin is below the 50% area of the daily stochastic. The market is in a bearish momentum.

Technical Indicators

Key Resistance Zones: $800, $820, $840

Key Support Zones: $500, $480, $460 

What is the next move for Bitcoin Cash?

BCH/USD is in a downtrend as the price is falling below the moving averages. Meanwhile, the September 23 downtrend has tested the 61.8% Fibonacci retracement level. The retracement suggests that BCH is likely to fall to the Fibonacci extension level of $1.618 Fibonacci extension or $282.19.

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.