Bitcoin Cash has a breakdown as it falls from a high of $350 to a low of $250 on March 7. The market has remained in consolidation since after the breakdown. All the positive moves to breach the breakout level of $360 were dashed. The downtrend has broken important support levels like $306 and $270.
This will portend negatively for BCH. Any further selling will compel the coin to drop to a low of $200. The low of $200 is at the bottom of the chart which is the critical support level. BCH has already done a downward correction when it fell and consolidated above $200 before the resumption of an uptrend.
With the recent price breakdown of BCH, it has fallen below 20% of the daily stochastic. This implies that the market has reached the oversold region. Selling pressure is presumed to be exhausted. It is expected that buyers will emerge in the oversold region to push BCH upward.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
Bitcoin Cash is currently consolidating above $260 after the last breakdown. We assume that the selling pressure has ended because the coin reached the oversold region. The current support may hold. What we are expecting is the upward movement of the market; propelled by the emergence of bulls at the oversold region.
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.