Bitcoin Cash Declines, May Face Further Downsides Below $250 Support
Dec 09, 2020 at 14:08 //
NewsSince December 1, Bitcoin Cash has been consolidating between $280 and $300 after the bulls failed to break the $320 resistance level. The bulls have earlier been repelled at the $360 overhead resistance.
The current downward move is a sign of bears’ superiority over the bulls. Presently, BCH has fallen above critical support at $250. If the bulls defend this critical support, the upside momentum will resume.
A strong bounce above the current support will propel BCH to rally above $280. That is, out of the bearish trend zone. Then the crypto will resume upside momentum. Otherwise, the downtrend will resume as the coin is in the bearish trend zone. Sellers may take advantage and push BCH to either $245 or $229. In the meantime, BCH is trading at $264 at the time of writing.
Bitcoin Cash indicator reading
BCH price has broken below the support line of the ascending channel. The implication is that the crypto is likely to decline on the downside. In the same vein, the price has broken below the SMAs which suggests a downward movement of the coin. The coin is at level 45 of the Relative strength index period 14. It indicates that the coin is in the downtrend zone and below the centerline 50.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
What is the next move for Bitcoin Cash?
Bitcoin Cash is in a downward move after the recent breakdown. The Fibonacci tool indicated a further downward movement of the coin. On December 1 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that BCH is likely to fall and reach the low of level 1.618 Fibonacci extensions. That is a low of $240.25.
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