Bitcoin Cash falls as the critical support at $240 cracks. The BCH/USD pair is likely to hit the previous low of $200.
The bulls are aggressively defending the $240 price level as the market moves up to make a retest. A retest means that price is likely to continue in the direction of the prevailing trend. Bitcoin Cash will drop if the bears succeed in penetrating the price at $240. However, if the bulls hold on to the price at $240, the market will rise to retest the resistance at $310. Presently, Bitcoin Cash is trading below the $240 price level as the bears overwhelm the bulls. It appears the price will find support at $200.
The price has broken the resistance line of the horizontal channel; this implies that the market will continue falling to the range-bound zone. The RSI period 14 level 36 also shows bearish signs as the market approaches the oversold region.
The pair is falling as the support at $240 cracks. There is no doubt that the price may reach the previous low. Traders should not place buy orders until the RSI is below level 30. Meanwhile, the pair will commence a sideways move if it finds support at $200.
Key Supply Zones: $320, $360, $400
Key Demand zones: $200, $160, $120
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.