Bitcoin Cash Consolidates Above $250 Support for Resumption of Upside Momentum

Oct 16, 2020 at 12:20 // News
Coin Idol
Bitcoin Cash might rally above the $280 high

Bitcoin Cash suffered a setback as buyers attempted to push prices above the $260 resistance. Today, the coin has fallen to $243 low but it is trading above $253 high at the time of writing.

Despite the breakdown, the coin recovered quickly above the $250 support. BCH is on track as price is above the SMAs which suggest that the coin will resume a fresh uptrend on the upside. Once buyers break the $260 resistance convincingly, BCH will rally above the $280 high.  

The momentum will extend to $300 high. Nonetheless, buyers must sustain the bullish momentum above the $250 support for the resumption of upside momentum. On the other hand, if the bears break below the $250 support, the selling pressure will resume. That is the downtrend will extend to the lows of $243 or $238. In the meantime, BCH is fluctuating above the $250 support as bulls and bears are undecided about the direction of the market. 

Bitcoin Cash indicator reading  

Bitcoin Cash is still above the 80% range of the daily stochastic. It indicates that the coin is in the overbought region. At that price level, sellers are likely to emerge to push prices down. However, in a trending market, the overbought conditions may not hold as price begins to rise. The coin is likely to rise as price bars are above the SMAs.

BCH - Daily Chart.png

Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120  

What is the next move for Bitcoin Cash?   

The crypto is fluctuating above the $250 support level. The price will continue to fall if the support is broken. On the downtrend of today, the retraced candle body tested the 61.8% Fibonacci retracement level. The implication is that the market will further decline to the 1.618 Fibonacci extension level. That is a low of $230.

BCH - Daily Chart.png 2 chart.png

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.

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