In its last attempt to break the $280 overhead resistance, BCH suffered a breakdown. The bears broke through the support levels to reach the $227 low.
For the past three days, BCH has been consolidating above $230 support level. The crypto is consolidating in the bearish trend zone as BCH has the possibility of further depreciation.
From the price action, the market is characterized by small body candlesticks like the Doji and spinning tops. The small body candlesticks are in consolidation, indicating that buyers and sellers are undecided about the direction of price. Nonetheless, after a period of consolidation, there is likely to be a breakdown or breakout.
Bitcoin Cash Indicator Reading
On the chart, price is below the EMAs indicating that BCH may fall. Also, when price breaks the support line of the channel and closes below it; it is an indication of a further downward move. Possibly after consolidation, a downward move is expected. The coin is also below 40% range of the daily stochastic, indicating bearish momentum.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
What is the Next Move for Bitcoin Cash?
As BCH falls and finds support above $220, buyers have an uphill task to battle the resistance levels. The crypto is trading now in the bearish trend zone. BCH may reach the lows of $200 or $210 if the downtrend continues. Possibly a rebound will occur at those levels.
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.