Recently, Bitcoin Cash broke the $240 resistance where it was initially trapped. Surprisingly after a pullback, it rebounded twice to break the resistance at $255 but the momentum was insufficient to break the overhead resistance at $280.
There was a serious bearish reaction at the overhead resistance that repelled the upward move. The crypto fell back and found support above $240. BCH is not out of the doldrums as it has to battle the resistance of $255 and $280 to push the price to the previous highs.
It is anticipated that a thorough breaking of $255 resistance will push the coin to $280 overhead resistance. Perhaps, a strong bounce above $240 support will break the resistances of $255 and $280. The momentum can extend to $320 high. BCH will be compelled to a sideways move below $255 if the bulls are unsuccessful over the resistances.
Bitcoin Cash still has bullish momentum above the 78% range of the daily stochastic. Besides, the coin is approaching the overbought region of the market. This can invite the presence of sellers in the overbought region. The price bars are above the EMAs for a possible upward move.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
Bitcoin Cash bulls have a task to break the $255 resistance. Failure of the bulls may attract a bearish reaction. The bears may break the $240 support and the market will slump to $217 price level. A further downtrend is likely if buyers fail to act.
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.