Yesterday, Bitcoin Cash (BCH) rose to a high of $731 and then reversed. Today BCH has retraced to a low of $685 and has started a new uptrend.
During the initial uptrend, buyers attempted to recapture the previous price level of $800. The previous price level was reached on September 6, but buyers faced fierce rejection at the recent high.
Today, buyers have begun a new uptrend to break above resistance at $731. A break above current resistance will drive price towards the high at $800. However, the bullish momentum is unlikely to last as the market has reached the overbought area. However, if the overbought area holds, BCH will be rejected at the $800 high.
The recent retracement has seen the altcoin reach level 65 on the Relative Strength Index for period 14. The uptrend will continue if the price finds support above $680. Also BCH will rise if the price breaks the resistance line of the ascending channel and closes above it. BCH is below the 80% area of the daily stochastics. However, the stochastic bands are sloping upwards, indicating an uptrend.
Key resistance zones: $800, $820, $840
Key support zones: $500, $480, $460
Bitcoin Cash has completed a pullback to the downside. The retracement has eased as the price has found support above $680. Meanwhile, on November 9, a retracement candlestick tested the 78.6% Fibonacci retracement level. This retracement suggests that BCH will rise but reverse at the 1,272 Fibonacci extension or at $773.35.
Disclaimer. This analysis and forecast is the personal opinion of the author and does not constitute a recommendation to buy or sell cryptocurrencies and should not be considered an endorsement of Coin Idol. Readers should do their own research before investing any money.