Bitcoin Cash has recovered above the crucial $280 support but the crypto is not free from sellers’ threat. BCH rebounded above the $270 support to reach above $297 price level.
The coin is facing rejection at the $300 resistance zone. The upside momentum may continue if buyers sustain hold above $ 280 support or above the EMAs. BCH is likely to rise and retest the $300 resistance zone. If successful, the momentum will extend to retest $320 overhead resistance.
Meanwhile, BCH is retracing to the support above $280. The coin will decline to the previous low if the current support fails to hold. Nonetheless, where the current support holds, a retest at the $320 overhead resistance is likely. Nevertheless, BCH has fallen to $246 low at the time of writing.
The price bars are below the EMAs which indicate that the coin is likely to fall. BCH is above the 30% range of the daily stochastic. The coin was earlier in a bullish momentum but the stochastic band is pointing downward. This indicates that BCH has bearish momentum.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
BCH has continued the downward move because of the rejection at the $300 resistance zone. On August 1, the uptrend was stuck below $320 resistance; a retraced candle body tested the 61.8 % Fibonacci retracement level. The implication is that when the uptrend resumes, BCH will rise and reach 1.618 Fibonacci extension level.
Disclaimer. This analysis and forecast are the personal opinions of the author that 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.