Bitcoin Cash Struggles below $520 Resistance as Bears Threaten to Short

Bitcoin Cash Struggles below $520 Resistance as Bears Threaten to Short

July 28, 2021

After the recent rally, Bitcoin Cash (BCH) has been struggling below the $520 high for the past 48 hours. Since the beginning of last week, the cryptocurrency has made positive moves to the upside.

However, the short uptrend was halted at the recent high on July 26. For the past three days, altcoin has been in a downward correction below resistance.

On the upside, if buyers break above $520 resistance, the market will rally to the high of $640. However, the upside move is doubtful as Bitcoin Cash seems to be trading in the overbought region of the market. Nonetheless, the cryptocurrency may fall again if BCH /USD encounters rejection at the $520 resistance. Today, buyers are trying to retest the recent high. In the first rejection, the market sank to $467 low and resumed upwards.

Bitcoin Cash indicator reading

BCH/USD has risen to the level 54 of the Relative Strength Index period 14. The altcoin is now in the bullish trend zone and above the center line 50. The cryptocurrency is in a position to rise to the upside. Bitcoin Cash is below the 75% area of the daily stochastics. The cryptocurrency is in bearish momentum and is capable of falling downwards.

Technical indicators:

Major Resistance Levels – $1,800 and $2,000

Major Support Levels – $600 and $400

What is the next move for Bitcoin Cash?

Bitcoin Cash could continue its downward movement as it experiences a second rejection. The upward movement of the market is doubtful. Meanwhile, on July 27 downtrend, a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement suggests that BCH will fall to the 2.618 Fibonacci extension level or the $383.13 level.

Disclaimer. This analysis and forecast are the personal opinions of the author and are 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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