Bitcoin Cash Breaks Down Amidst Price Rejection

Bitcoin Cash is facing another setback as the bulls fail to break above the $360 resistance. Sellers have taken control of the market. It becomes imperative that the price will fall either to the low of $280 or $306. When the bears find support at the expected price level, BCH will resume a range-bound  move above the current price level.

Nonetheless, it will foretell negatively on the coin, if sellers break below $280. This will certainly provoke another round of selling pressure. Meanwhile, we await the completion of the downward move. Bitcoin Cash will resume its upward movement if the price finds support at $306 or $280.

Bitcoin Cash Indicator Reading 

On January 17, the market was in the overbought region of the daily stochastic indicating the presence of sellers to push the price downward. Today, BCH has dropped to a low of $301. The stochastic has also fallen below 60 % range indicating that the coin is in bearish momentum.

Key Resistance Zones: $320, $360, $400

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

What is the Next Direction for Bitcoin Cash?

Presently, Bitcoin Cash is falling and reaching a low of $301. BCH is under threat as the selling pressure is ongoing unabated. On the downside, if sellers break below the EMAs, the downtrend will resume. Undoubtedly, the market will reach a low of $200 if the bears break below the EMAs. However, if the $280 support holds, the upward move is possible.     

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.