Sellers have broken a crucial support level of Bitcoin Cash. Invariably, this may further sink the coin into the bearish trend zone.
The $280 support level has been holding since August 1 before the recent breakdown. Before now buyers have failed to push BCH to the previous highs. The attempts to break the $320, $300, and $290 resistance levels were foiled.
Sellers overwhelmingly broke a $280 support level. Undoubtedly, BCH may reach $240 low unless it recovers immediately. Today, the coin is falling and trading at $274 at the time of writing. Meanwhile, price is fluctuating above $270 as the market continues the downward move. BCH may recover if the bulls buy from the dips. Otherwise, the selling pressure may persist.
The price has fallen above the 26-day EMA. The altcoin will fall into the bearish trend zone once the 26-day EMA is breached. Today, BCH has fallen below a 20% range of the daily stochastic. The price is approaching the oversold region of the market. The implication is that buyers will emerge in the oversold regions to push prices upward.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
Bitcoin Cash is currently on a downward move. Its uptrend is doubtful as it loses the support level at $280. The uptrend will resume if buyers recover above the $280 price level. Expectantly, buyers will emerge as the coin approaches the oversold region of the market. BCH will test the resistance at $300 if it recovers. The bullish momentum will continue to $320 high if buyers are successful.
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.