Bitcoin Cash Surges to $440, Faces Selling Pressure
Feb 07, 2020 at 14:29 //
News
Bitcoin Cash (BCH) reaches a high of $440 in an uptrend. The uptrend is likely to be terminated.
Bitcoin Cash price Long-term Analysis: Ranging
In the last 48 hours, BCH has made a tremendous move, gaining 90% from the bear market. Coinidol.com notes that the market has been in a strong bullish momentum as the coin reaches the $440 price level. However, a Doji candlestick appeared after a high of $440.
It indicates that the market is likely to reverse. This is because buyers have indicated that they are unable to keep prices higher. Presently, sellers are pushing the price back to its opening price. This is a clear indication that the uptrend is reversing. Nonetheless, if the market retraces, it will fall to the next support at $360.
Bitcoin Cash Indicator Reading
Bitcoin Cash has shot up to the $440 price level. There was an appearance of a Doji candlestick indicating a reversal of a trend. BCH is above 80% range of the daily stochastic indicating that BCH is in the overbought region of the market. This gives the conclusion that the pair is going to fall. In the overbought region, buyers are not available to push the price upward. Rather we have sellers who push BCH downward.
Key Resistance Zones: $320, $360, $400
Key Support Zones: $200, $160, $120
What is the Next Direction for Bitcoin Cash?
Bitcoin Cash is likely to face a downward move after its tremendous upward move. This is an opportunity for traders to book their bullish gains and prepare for the downward move. However, a short trade can be initiated at the current price level. Then a stop-loss order should be placed at $480. Meanwhile, if the price breaks below the EMAs, then selling pressure is likely.
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.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow
