Unarguably, Bitcoin Cash is out of the downtrend zone as the bulls break key resistance levels. Especially, the bulls broke the $360 resistance which had earlier remained unbroken since August 2019. Earlier on, BCH was faced with price rejection at the $400 on January 18. The resultant breakdown lasted until the low of $300 was reached.
The $300 support is holding as the BCH bounces again at the current price level. Interestingly, the price has shot up and it is approaching the $400 price level. The coin was earlier rejected at that price level. Now if the bulls sustain the same momentum and break the resistance at $400, BCH will rise and reach the $480 price level. However, if the coin is hindered at the resistance, BCH may remain range-bound below the resistance.
The RSI period 14 is rising simultaneously with the coin. The indicator is above level 71 indicating that the coin is in the overbought region of the market. This explains that the upward move is doubtful as buying has been overdone. In the interim, sellers may be generated to push prices downward.
Key Resistance Zones: $320, $360, $400
Key Support Zones: $200, $160, $120
Bitcoin Cash is in an upward move approaching the $400 resistance. Presently, the upward move may be delayed by sellers. Currently, the market is at $393 price level. If BCH is resisted, it may fall to the support of the $360 price level. The coin may resume its upward move if the support holds. It will foretell negatively if the bears break below $360 support.
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.