Bitcoin Cash Drops to Previous low of $387, Poises for Upward Move Soon
Bitcoin Cash (BCH) saw its second round of downtrend as it fell to a low of $384 and resumed its upward correction. Price corrected upwards to $416 at the time of writing, but selling pressure is likely to continue.
If selling pressure resumes, the market will likely fall to the low of $365. At this price level, Bitcoin Cash is said to have fallen into oversold territory in the market. It is believed that selling pressure is exhausted and the way is cleared for buyers to emerge in the oversold area of the market. Today, the upside correction may face rejection at the 21-day line SMA. On the downside, BCH will continue to fall to the low of $365 if the cryptocurrency encounters rejection at the recent high. The upside of the cryptocurrency will resume if it finds support above the $360 support.
Bitcoin Cash indicator reading
BCH/USD has fallen to the 33 level on the Relative Strength Index for period 14. The altcoin used to be in the oversold region, but the price corrected upwards. The cryptocurrency is in the bearish trend zone and is capable of falling downwards. Bitcoin Cash is above the 25% area of the daily stochastic. It indicates that the market has resumed bullish momentum.
Major Resistance Levels – $1,800 and $2,000
Major Support Levels – $600 and $400
What is the next move for Bitcoin Cash?
Bitcoin Cash is still in a downtrend. The downtrend is reaching bearish exhaustion. Meanwhile, on July 14 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that BCH will fall to the 1.618 Fibonacci extension level or the $404.57 level. From the price action, BCH has tested the 1.618 Fibonacci extension, but further downside is expected.
Disclaimer. This analysis and forecast are the personal opinions of the author and are 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.
Source: Read Full Article