Bitcoin Cash Faces Stiff Resistance, Sellers Threaten to Short Further

Currently, BCH is fluctuating over $187 after testing the $200 supply zone. Previously, BCH had traded in the previous price range before its eventual breakdown. Two days ago, the bulls were unsuccessful at breaking the $200 resistance. The coin was resisted and it retraced to the $187 low.

This portends a negative signal as the bears may take undue advantage to sink the coin to $170 low. Ordinarily, if the upward move is sustained, the bulls would have broken the $200 and attain the $227. The bulls’ failure may cause further depreciation to BCH. Hopefully, strong defense by buyers will keep the bears away from reaching the $170 low. In other words, a sideways move is expected.

Bitcoin Cash Indicator Reading 

The bulls successfully defended the $170 low and moved up to the $187 on December 17. The RSI also jumped up to level 38. This means that the price is reaching the range-bound zone. BCH possibly will rise over the $200 if the bulls break and the price closed above the support. The coin's inability to rise is because of a lack of buyers at the lower levels.

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

Key Demand Zones: $200, $160, $120  

What is the Next Move for Bitcoin Cash?

Bitcoin Cash fell to the $187 low and resumed consolidation. Consolidation is a period of indecision where operators pause to know the next line of action. The bears may have an added advantage to slide beneath the current level. Possibly, a revisit of the $170 is very glaring. Traders have to adjust their parameters if the coin decides to fall.

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.