Bitcoin Cash Is in a Brief Rally, Faces Strong Rejection at $360 Resistance
Since November 20, the bulls have broken the resistance at $260 and $280. This bullish scenario has provided an enabling ground for the coin to achieve price acceleration.
Yesterday, BCH rallied to $373 but faced rejection at the recent high. The coin slumped to $330 low and resumed to retest the resistance at $260. In the second retest at the recent high, BCH was repelled as the coin fell to the same low at $330. BCH bulls have been able to breach the resistance at $280 but the upward move is impeded at the $360 resistance.
Buyers have been retesting the resistance to break it. Nevertheless, BCH is likely to rise and reach the previous high of $440, if buyers push above the $360 resistance. However, on November 24 and November 25, there are candlesticks with long wicks. This indicates that there is strong selling pressure at higher price levels. It is doubtful if buyers will be able to overcome the strong selling pressure above the recent high. In the meantime, BCH is fluctuating below the $360 resistance.
Bitcoin Cash indicator reading
BCH is at level 74 of the Relative Strength Index period 14. The RSI has risen because of the recent price surge. Presently, BCH is trading in the overbought region of the market. It implies that sellers may emerge in the overbought region. The SMAs are sloping upward indicating the uptrend.
Key Resistance Zones: $440, $480, $520
Key Support Zones: $200, $160, $120
What is the next move for Bitcoin Cash?
With the recent breakout above $280 resistance, BCH is close to the projected price level. The Fibonacci tool has indicated an upward movement of the coin. On November 21 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. This implies that the market will rise to level 2.0 Fibonacci extensions or $379.53 high. From the price action, BCH is trading at $348 at the time of writing.
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.
coinidol.com By Coin Idol