The price of Bitcoin Cash (BCH) is in a downward correction as the bears have broken below the 21-day moving average line.
The cryptocurrency has fallen to the previous low of $280 as the bulls are buying the dips. Today, BCH resumes its uptrend and returns to its previous highs. In the last price action, buyers pushed the altcoin to the high of $340, but could break out above the recent high.
The altcoin was pushed back below the resistance level after a week of sideways movement. Today, BCH is trading at $302 at press time. If the buyers break the 21-day moving average to the upside, the bullish momentum will expand to break the resistance at $340. If the buyers are successful, BCH will rise to a high at $450. On the other hand, if the altcoin fails at the 21-day moving average line, the downward correction will continue.
Due to the recent retracement, BCH has fallen to level 42 of the Relative Strength Index for the 14 period. The altcoin is in the downtrend zone below the center line 50. Moreover, the price bars are below the moving averages, indicating a downward price movement. BCH is above the 25% area of the daily stochastic. This indicates that the market is in a bullish momentum.
Key Resistance Zones: $800, $820, $840
Key Support Zones: $500, $480, $460
Bitcoin Cash is in an upward correction. The upside move may encounter resistance at the 21-day moving average line. If it does, the downtrend will resume. Meanwhile, on February 12, the downtrend has seen a declining candlestick testing the 50% Fibonacci retracement level. This retracement suggests that BCH will fall to the 2.0 Fibonacci extension level or $260.57.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.