Bitcoin Cash Bounces at the Bottom of the Range but Makes an Upward Correction

In the last 24 hours, BCH fell to a low of $202 and bounced sharply from the bottom of the tight range. This implies that the fluctuations are likely to continue for a few more days as the bulls push the price to the overhead resistance level. On October 24, 2019, the market now fluctuates between the levels of $202 and $240 price levels.

Within a month, the bulls have failed to push the price above the $240 overhead resistance. This was as a result of a lack of buyers at the upper price level. A bullish break at the $240 overhead resistance will take BCH out of consolidation in the downtrend zone. Likewise, the bears were unsuccessful to break the $200 demand zone because the price has reached the oversold region of the market.

Bitcoin Cash Indicator Reading 

On August 30, the price made an upward correction as the bull candle body tested the 0.786 retracement level. Nevertheless, after the last bearish impulse, the price fell to the 1.272 Fibonacci extension level. At the 1.272 extension level, the coin is expected to reverse after consolidation in the downtrend. 

The blue and red lines of EMAs are trending horizontally indicating that price is fluctuating. A break above the upper channel will mean the resumption of a bullish trend. The price is in a bearish momentum as it is below the 60% range of the daily stochastic indicator.

What Is the Next Direction for Bitcoin Cash?

The BCH/USD pair bounces at the bottom of the price range. This implies that Bitcoin cash is likely to continue its consolidation in the next few days to come. Traders can take advantage as the price makes an upward movement to the upper channel.

A long trade should be initiated at the lower channel in anticipation of price upward movement. Likewise, a short trade should be initiated at the upper channel in anticipation of the price downward movement.

Key Supply Zones: $320, $360, $400

Key Demand zones: $200, $160, $120

Disclaimer. This analysis and forecast are the personal opinions of the author 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.