BCH fails to breach the $250 resistance after rebounding twice. The firm resistance at $250 has incapacitated the ability of the bulls to break the resistance.
For the past one week, buyers have been struggling above $240 support to push the price above the resistance. Possibly a strong bounce above $240 will propel price to break through the $250 resistance. The momentum can extend to $280 if buyers are successful above $250 resistance. However, if the bulls fail to act positively, sellers may break below $240 support. BCH is likely to drop to $210 support.
BCH is currently above the 80% range of the daily stochastic. It implies that at $243, the market is already overbought. It also means that sellers will emerge in the region to push prices down. With the current situation, it is unlikely for buyers to break the $250 resistance. Meanwhile, the EMAs are horizontally flat indicating that the crypto is in a sideways move.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
Bitcoin Cash may face a downtrend because the market has reached the overbought region. In the meantime, BCH is unlikely to break through the $240 and $280 resistances. The stochastic is already making a U-turn; it may imply the early appearance of sellers in the region.
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.