Bitcoin Cash Pushes Marginally Upward, Attempts to Erase Bearish Losses

The bulls are unrelenting as they push to the previous price levels of June 2019. BCH is approaching a $500 resistance level. Nevertheless, it is presumed that there will be a strong price tussle between the bulls and bears in the $500 to $522 price level. Meanwhile, BCH has reached the level where the price action formed a bearish double top in June 2019.

This pattern signals the resumption of selling pressure. It is possible that if the price breaks the current resistance, buyers will push the price into a range of $500 to $522. However, if the bulls fail to overcome the resistance at $492, BCH will drop to $440 support level.  

Bitcoin Cash Indicator Reading 

Bitcoin Cash is in the overbought region above the 80% range of daily stochastic. The stochastic bands have been suspended in the overbought regions since February 6. Firstly, this implies that BCH is in a strong bullish momentum. Also, BCH is in the overbought region of the market meaning that sellers may come in to push BCH downward. Presently, the bullish momentum is still active in the region. As soon as it is exhausted, the momentum will turn bearish.

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

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

What is the Next Direction for Bitcoin Cash?

BCH has remained stable since it broke above the $440 resistance. The upward move has been consistent despite the fact that BCH is in the overbought region of the market. BCH is still intact in the ascending channel. However, if the price breaks the resistance line, the upward move is guaranteed. Similarly, if the price breaks below the support line, BCH will drop to the next support.

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.