Bitcoin Cash Loses Critical Support at $250, Further Drop to $216 Likely
Nov 18, 2020 at 13:45 //
NewsYesterday, the bulls retested the $260 minor resistance but failed to break above it. The retest was counterproductive as bears were seriously defending the resistance zone. Consequently, today, BCH plunged to a low of $241 but the price corrected upward.
The upward correction retested the $250 resistance and resumed a downward move. Certainly, BCH is likely to further decline on the downside. This is because it has lost critical support at $250.
The upside momentum will resume as long as the price is sustained above $250. The coin is falling and approaching the $231 support. A break below the $231 support will mean a further downward movement of the coin to a $200 low. The upward move is doubtful. However, if BCH falls and finds support above $231, that will signal the resumption of the uptrend. On the other, if the $231 support fails to hold, the downtrend will continue on the downside.
Bitcoin Cash indicator reading
BCH price is likely to break below the support line of the ascending channel. A break below the support will mean a downward movement of prices. BCH is also going to fall because the price has broken below the SMAs. The 50-day and 21-day SMAs are sloping downward indicating the trend.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
What is the next move for Bitcoin Cash?
Certainly, the crypto's next move will be a downward movement of the coin. On November 15 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the coin will fall to level 1.618 Fibonacci extensions. That is a low of $218.42.
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.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow