Bitcoin Cash Faces Strong Rejection after Sudden Price Rally

Oct 07, 2020 at 12:43 // News
Coin Idol
Bitcoin Cash is likely to continue its downward move

Yesterday, BCH had a sudden price spike as the coin reached a high of $230. The price momentum crashed soon after reaching the recent highs.

Today, BCH is trading at $217 as the coin approaches the critical support at $200. Before the price spike, the crypto has earlier plunged to the low at $212. 

The price was corrected upward but was hindered as it resumed a range bound movement between $215 and $223. The coin is still trading in this tight range as the next direction is uncertain. The coin has shown further downward move as price retests the 21-day SMA. Sellers are on the advantage of pushing prices down as they trade in the bearish trend zone.  

Bitcoin Cash indicator reading 

BCH price breaks the 21-day SMA but faces rejection at the $233 price level. It is below the 60% range of the daily stochastic. This indicates that the coin has bearish momentum. The stochastic bands are horizontally flat indicating the sideways move.

BCH - Coinidol (1).png

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

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

What is the next move for Bitcoin Cash?

Bitcoin Cash is likely to continue its downward move. This has been confirmed in the last rejection at the $230 high. Meanwhile, in the October 2 downtrend, the retraced candle body tested the 61.8% Fibonacci retracement level. This gives the impression that BCH will decline to the low at 1.618 Fibonacci retracement level.

BCH - Coinidol 2 chart (1).png

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.

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