Bitcoin Cash is now in a downward move after its retest at the $560 resistance zone. For the past week, BCH has been making several retests at the resistance zone.
The long candlestick wicks indicate that there is strong selling pressure at higher price levels. As the candlesticks face rejection, the price has fallen below the 21-day and 50-day SMAs. This implies that BCH is now in the bearish trend zone as it is capable of a further decline.
Presently, the market has fallen to the low of $486 and if price falls and breaks below the $445 support, the selling pressure may persist. However, if the altcoin falls and the support at $445 holds, it implies that BCH will continue its range-bound movement for a few more days. Since February 23, the price movement has been restricted between the $445 and $560 price levels.
BCH was previously in the oversold region. It is now above the 25% range of the daily stochastic. It indicates that the market is in a bullish momentum. The price is below the 21-day and 50-day SMAs which indicates a possible downward movement of price.
Major Resistance Levels – $750 and $800
Major Support Levels – $450 and $400
After the breakdown on February 23, BCH price corrected upward but was repelled, signaling a further downward move. On February 28 downtrend; the retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that BCH is likely to fall to level 1.272 Fibonacci extensions or the low of $339.87. The market may reverse after falling to this low.
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.