Bitcoin Cash Continues to Slump Down as Price Reaches the Crucial Support Level at $840

Since April 17, Bitcoin Cash has continued to slump down after each correction on the upside. BCH/USD has resumed a downward move after buyers failed to push BCH above the $1,216 peak price.

Today, BCH price corrected upward to the high of $1,000 but was repelled. The altcoin fell and reached the low of $932. In the previous correction on April 19, buyers pushed BCH to the high of $1,040 but sellers resisted as the market declined to $840 low. 

The $840 support has been crucial as the bears find penetration difficult at the recent support. The bears have retested the current support on more than four occasions without breaking it. Because of the downward correction, BCH is fluctuating between levels $840 and $1,000. The downward correction has not ended as the bears attempt to break below the moving averages. On the upside, if the support of $840 holds, it will signal the resumption of the uptrend. Conversely, if the support is breached the selling pressure will resume. Possibly, the altcoin will reach the low of $700.

Bitcoin Cash indicator reading 

BCH is at level 51 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. BCH price is above the 21-day SMA and the 50-day SMA which suggests a possible rise in price. The market is in a bullish momentum as buyers initiate upward moves.

Technical indicators:  

Major Resistance Levels – $850 and $900

Major Support Levels – $450 and $400

What is the next move for Bitcoin Cash?

BCH/USD uptrend was terminated at the high of $1,200 resistance. Thereafter, the market retraced to the 61.8% Fibonacci retracement level.  The retracement implies that BCH will rise to level 1.618 Fibonacci extensions or the high of $1685.02.  

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.