The recent breakout pushes Bitcoin Cash to a $244 high. The bulls overcame the bears as price broke the $228 resistance to reach a high of $244.
BCH should have reached the $260 resistance if the $244 resistance was broken. This positive move has made the coin to reach the overbought region of the market. The price has retraced and resumed consolidation above $232 support.
As price consolidates above $232, a rebound above the current support will propel price to break the $244 resistance and price will rally above $260. The momentum will extend to $280 resistance. Once the $280 overhead resistance is broken, BCH will rally above $320. However, if the bulls fail to push BCH into the previous highs or turns from $260 resistance, the coin will fall. BCH will fall and resume a sideways move between $232 and $244.
Following the latest bullish impulse, price broke above the EMAs to reach the $244 high. As the market reached the overbought region, BCH retraced to consolidate above the EMAs. Firstly, BCH will rise as long as price holds above the EMAs. Secondly, the coin can as well fall, if price breaks below the EMAs. BCH is above 80% range of the daily stochastic. This indicates that the coin has reached the overbought region. Sellers have already pushed prices down.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
Bitcoin Cash will resume its uptrend as soon as the $244 resistance is breached. Otherwise, the consolidation between $232 and $244 will continue. The market has retraced to $234 at the time of writing. The price action is indicating bullish signals.
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.