Bitcoin Cash Attempts to Move up but Buying Dries up at Supply Zones

Interestingly, BCH is making another impressive move to get to the supply zones. Can it breach the $197 supply zone? After the coin dropped to $170 low, the bulls were repelled at the $197 supply zone. The coin drops to $184 low. Today the bulls are making a repeat attempt on the supply zones.

The expectation at the moment is that the upward move should be sustained. The availability of more buyers is expected at higher price levels. On the upside, if the $197 is breached the price will drive the coin to rally above $227. Anything contrary to this bullish view will be a range-bound move below the $200 supply zone.

Bitcoin Cash Indicator Reading 

A close attempt has been made to break above the 12-day EMA which is a major resistance line. Expectantly, BCH will be in the supply zones if the price breaks above the EMAs. At the moment, the price action seems to differ with the stochastic indicator. At present, we see the market showing signs of a bullish move. Conversely, the indicator is signifying a bearish momentum. 

Key Supply Zones: $320, $360, $400

Key Demand Zones: $200, $160, $120  

What is the Next Direction for Bitcoin Cash?

The pair has been trading below the horizontal channel for the past week. This was consequent upon a renewed selling pressure at the $200 support. The coin has found it hard to break into the former range. It is doubtful for BCH to move upward as the bullish momentum is dying up. We expect more buyers at the lower price level to push BCH upward.

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.