The price of Bitcoin Cash (BCH) is in a downward correction as the altcoin drops to the low of $111.84. The current level is the historical price from August 19.
Since August 19, BCH has been in a sideways movement between the $110 and $140 price levels. On July 29, buyers failed to break through the overriding resistance of $164.
They were rejected when the altcoin fell below the moving average lines. Yesterday, they pushed the altcoin above the 21-day line SMA, but got stuck at the 50-day line SMA. If buyers keep the price above the moving average lines, the altcoin will rise and retest the resistance at $140. The bullish momentum will extend to the upper resistance at $164. On the other hand, BCH will continue its sideways movement between $110 and $140 if buyers fail to keep the price above the moving average lines.
The cryptocurrency is at level 41 of Relative Strength for the period 14. It is in a downtrend as it falls to the current support that has held for the last three months. The price bars of the cryptocurrency are below the moving average lines, which indicates a further decline. The cryptocurrency is below the 20% area of the daily stochastic. BCH is trading in the oversold area of the market.
Key Resistance Zones: $130 and $150
Key Support Zones: $120 and $100
Bitcoin Cash is in a downtrend, but selling pressure has eased as the altcoin consolidates above $110 support. The uptrend is doubtful as the altcoin fluctuates in a range. On the downtrend from August 2, a retraced candlestick tested the 61.8% Fibonacci retracement level. The retracement suggests that BCH will fall but reverse at the 1.618 Fibonacci extension level or $112.35. From the price action, BCH tested the 1.618 Fibonacci extension three times and resumed the sideways movement.
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 in funds.