Bitcoin Cash Slumps as It Faces Rejection at $540 and $510 Highs
Bitcoin Cash (BCH) has fallen to a low of $446 as sellers intend to push BCH price to its previous low of $387. The rejection at the $510 high signals the resumption of the downtrend.
Buyers have pushed BCH price to the $540 high three times already, but have been unable to break through $540 resistance. Selling pressure overwhelmed the bulls as the altcoin fell to a low of $480. Buyers made another attempt to push the altcoin to the previous high. The upside correction tested the $500 high twice but failed to continue. The current rejection forces the altcoin to resume a downward movement. On the downside, BCH will fall to a low of $400. The crypto will continue to depreciate if it breaks below the previous low of $387.
Bitcoin Cash indicator reading
The 21-day line SMA acts as a resistance line to BCH. In the downtrend, BCH price has encountered rejection at the 21-day line SMA. BCH is below the 20% area of the daily stochastic. This indicates that the market has reached the oversold area. It is believed that the selling pressure is likely to ease. However, in a market with a strong trend, the oversold condition may not last. BCH /USD has fallen to the 29 level of the Relative Strength Index period 14. The RSI indicates that Altcoin is also oversold.
Technical indicators:
Major Resistance Levels – $1,800 and $2,000
Major Support Levels – $600 and $400
What is the next move for Bitcoin Cash?
Bitcoin Cash has resumed its downward movement. This is after its rejection at the 21-day SMA. Meanwhile, on July 9 downtrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that BCH will fall to the 2.0 Fibonacci extensions level or the $401. 45 level.
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.
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