Presently, Bitcoin Cash is consolidating above $220 after the breakdown of April 9. The pair's impressive runs in March and April resulted in the coin to attain a high of $280.
Unfortunately, the $280 price level was an overbought region of the market. This has been confirmed by the daily stochastic. The market has continued to be on a downward move after BCH was overbought. The initial fall was overwhelming as it reached $225 low.
The bulls immediately pulled back to $245 high. The selling pressure continued at $245, as price found support above $220. In the last 48 hours, the market is still consolidating above $220. The pair is now in the bearish trend zone and approaching the oversold region. Any further downward move may reach a low of $ 200. Alternatively, a rebound at $200 low will propel the coin to a high of $250.
The current downward move is nearing exhaustion as the market reaches the oversold region. Presently, price is below the 40% range of the daily stochastic. That is, it is in bearish momentum. However, at the moment the price is in consolidation above $220.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
As the market approaches the oversold region, buyers are getting ready to take possession of price. In other words, selling pressure is going to be exhausting. The EMAs are sloping horizontally indicating the range-bound movement.
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.