Bitcoin Cash Consolidates Above $230 Showing Signs of Weakness amidst Contraction

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May 20, 2020 at 11:18 // News

Bulls have made three attempts to break Bitcoin Cash $280 resistance

Following the last bearish impulse of Bitcoin Cash on May 10, the crypto has been confined to trading between the $230 and $250 price levels.


In late April and early May, the bulls have earlier made three attempts to break the overhead resistance of $280. The bulls were repelled thrice as the market fell to $230 low. 


Further upward movements were restricted below the $250 resistance. Assuming price breaks the $250 resistance; BCH will still fall because of stiff resistance from the bears. Alternatively, the crypto will fall to $200 low if there is resistance at the $250 high. At the recent support, there is the possibility of buying the dips or the coin will rebound. Meanwhile, the consolidation is ongoing between the current price range.


Bitcoin Cash indicator reading 


BCH is presently above the 25% range of the daily stochastic indicating that the coin has bullish momentum. From the price action, the market is consolidating with low volatility. The EMAs are horizontally flat depicting the current range-bound move.


BCH-Coinidol_(13).png


Key Resistance Zones: $440, $480, $520


Key Support Zones: $200, $160, $120


What is the next move for Bitcoin Cash?


Bitcoin Cash is presently consolidating above $230 as the market retraces from the $250 resistance level. The market is characterized by small body candlesticks like Doji and a spinning top. This provides information that buyers and sellers are exhausted and undecided about the direction of price movement.


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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