Bitcoin Cash Holds at Breakout Level after Downward Correction

Recently, Bitcoin Cash reached its peak of $497 during an impressive run. On February 15, BCH made a sharp correction as it dropped to the low of $380. The pair was in the overbought region of the market. In the overbought region, buyers are not available to push Bitcoin Cash upward. Rather the presence of sellers in the overbought region cause BCH to fall.

At the support of $380, the pair is making another upward move to retest the resistance at $500. However, as the bulls make their upward move, it is likely to face minor resistance at $440 or $460. Conversely, if the bears turn down and drop below $360 and the support are breached, the downtrend will extend to the low of $306. At the moment, the coin is facing minor resistance at $420.

Bitcoin Cash Indicator Reading 

Bitcoin Cash is trading at level 53 of the daily RSI period 14. This indicates that BCH is still in the uptrend zone where it tends to rise. Looking at the ascending channel, the bulls defended and survived the downtrend in the meantime. However, if the bears have succeeded in breaking the support line of the channel, then the downtrend will take its usual effect.

Key Resistance Zones: $440, $480, $520

Key Support Zones: $200, $160, $120

What is the Next Direction for Bitcoin Cash?

Bitcoin Cash is now trading above the support of $380. Expectantly, the bulls are resuming an upward move to retest the resistance at $500. Currently, BCH is facing minor resistance at $420. Nonetheless, if the resistance persists, BCH will be compelled to a sideways move between $380 and $420.

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.