Despite its constant fluctuation, the price consolidation is concentrated near the support. It gives the impression that sellers have the upper hand over the buyers while the coin ranges. Secondly, the coin failed to rebound because buyers show no aggressiveness. Thirdly, the price movement has been insignificant since December 10.
Also, there is a lack of buying power as the coin trades near the support. In my view, the bear’s dominance had been long. Therefore, buyers should come in near the support to push the coin to upper price levels. The coin will face a hurdle at the $227 resistance to jump over. A successful jump will see the coin reach a high of $240.
Given the retracement at 0.786, BCH is presumed to reverse at the 1.272 Fibonacci Level. The coin is still range-bound at the bottom of the chart. The coin has fallen below the 20% range of the daily stochastic which implies that the coin is in a strong bearish momentum.
Key Supply Zones: $320, $360, $400
Key Demand Zones: $200, $160, $120
BCH is trading and holding above the $200 support level. The pair is likely to rebound if more buyers come in above the price at $200. Expectantly the price level has been stable for position traders. However, short term traders should abstain from trading such coin.
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.