Since its rejection on December 1, BCH fell from $320 to $260. The coin rebounded immediately after retesting the previous low at $260. After the rebound, the coin rallied to break the $320 resistance.
The rally above the resistance was short-lived as the bears pushed back the price below it. The $320 resistance level was retested twice before it was repelled. However, the selling pressure above $320 is overwhelming as the bulls fail to continue with the rally.
Today, Bitcoin Cash is trading at $318 at the time of writing. Further upward move is likely if buyers push the price above $320 resistance. The bullish momentum will extend to retest the $360 overhead resistance. Meanwhile, BCH price is hovering above the previous price range of between $280 and $300. If the price falls within this range the market will be range-bound.
The altcoin is above the 80% range of the daily stochastic. It indicates that the coin will continue with the upward move as it is in a strong bullish momentum. The Relative Strength Index indicates that BCH is at level 63. The altcoin has room to rally before the RSI reaches the overbought region. The coin will rise as long as the price is above the SMAs.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
According to the Fibonacci tool, BCH is likely to move up. However, from the price action, the coin movement has been impeded at the $320 resistance. On December 17 uptrend, the coin was resisted at $320 resistance. The retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that BCH is likely to rise to level 1.618 Fibonacci extension. That is the market will soon reach the high of $363.37.
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.