Bitcoin Cash Faces Selling Pressure as Bulls Fail to Push Price above $340 Resistance

The bulls made positive moves but could not sustain the price above the $340 resistance. This attracted aggressive selling as the price fell to the low above $260 on March 9.

The market consolidated for three days above $260 before the bears broke the support and the downward move continued to a low of $140. In the meantime, the price is fluctuating at the bottom of the chart, as the bulls make an upward move. On the upside, if the bulls can break above the support line of the descending channel it will be a positive move. This will create an avenue of revisiting previous highs.

Bitcoin Cash Indicator Reading 

As Bitcoin Cash falls to a low of $140, the Relative Strength Index also reaches a low of level 28. This is indicating that the market is oversold. There is an emergence of bulls at the oversold region to push the coin upward. BCH will continue its upward move if the bulls break above the support line and price is sustained inside the channel.

Key Resistance Zones: $440, $480, $520

Key Support Zones: $200, $160, $120

What is the Next Direction for Bitcoin Cash?

The recent breakdown has caused Bitcoin Cash to enter the oversold region. We assume that the current support at $140 is likely to hold as the bulls push toward the critical support of $200. A push above $200 is a positive step for the resumption of the upward move. Traders are to be on the lookout to buy setups to enable them to initiate long trades. It is better to buy low and sell high.

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.