Bitcoin Cash Range-Bound, Consolidates Above $220 Support

Bitcoin Cash Range-Bound, Consolidates Above $220 Support

September 9, 2020

After the last breakdown, on September 3, Bitcoin Cash dropped to $200 support and made an upward correction.

The crypto corrected above $220 and resumed consolidation above the current support. Today, BCH is trading above $220 as price consolidation continues. Buyers and sellers are undecided about the direction of the market as the price continues its fluctuations. 

As the coin is in the bearish trend zone, there is a tendency for a further downward movement of the coin. The coin will fall to $200 low if the current support is broken. Nonetheless, $200 support is the critical support level of BCH which has not been broken since March. The crypto will fall to $178 low if sellers again break this support level. On the other hand, if buyers succeed in defending the $200 support, the coin will be range-bound for a few more days.

Bitcoin Cash indicator reading 

Bitcoin Cash is consolidating in the middle of the descending channel. The coin is likely to resume an upward move if price breaks and closes above the resistance line. Similarly, if it breaks and closes below the support line, BCH will continue a downward move. The coin is below the 20% range of the daily stochastic. That is, it is in a strong bearish momentum.

Key Resistance Zones: $440, $480, $520

Key Support Zones: $200, $160, $120  

What is the next move for Bitcoin Cash?

Bitcoin Cash is still consolidating above the $220 support. According to the Fibonacci tool, the crypto will fall, if the $200 is breached. After the last bearish impulse, the retraced candle body tested the 78.6% Fibonacci retracement level. This gives us the clue that price will fall to a low of 1.272 Fibonacci extension level. That is, BCH will reach a low of $178.

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.

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