Bitcoin Cash Trades Marginally below $800 Resistance, Faces Frequent Rejection

Bitcoin Cash (BCH) rebounded above $680 support to resume an upward move. The current uptrend is targeted to retest or break the $800 resistance. For the past three days, BCH fell and found support above the $680 for a possible uptrend.

Earlier on, the altcoin has been facing rejection at the recent high. This will be the fourth time; BCH will be rising to retest the $800 resistance. Nevertheless, on May 25, 26, and 27, buyers retested the resistance zone and were repelled. On the upside, if buyers overcome the resistance at $800, BCH will rally to $1000. Conversely, if BCH rises and faces another rejection at the resistance, the market will be compelled to a range-bound movement. BCH/USD is likely to fluctuate between $640 and $800.

Bitcoin Cash indicator reading 

The crypto has fallen to level 42 of the Relative Strength Index period 14. It indicates that the altcoin is in the downtrend zone and capable of falling on the upside. The crypto has resumed bullish momentum as it is above the 60% range of the daily stochastic. In the meantime, the 21-day and 50-day SMA are sloping downward indicating a downtrend.

Technical indicators:  

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

Major Support Levels – $1,000 and $800

What is the next move for Bitcoin Cash?

On May 23, BCH slumped to a $467 low and recovered from the downtrend. The altcoin has also corrected upward but the uptrend is facing rejection. The price indicator has indicated a possible upward movement of prices. Meanwhile, on May 25 uptrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. The retracement indicates that BCH will rise to level 1.618 Fibonacci extension or level $979.30. From the price action, BCH is trading below the resistance at $800.

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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