Sophia's Blog

Sophia's Blog

Bitcoin Cash Slumps as It Faces Rejection at $540 and $510 Highs

Bitcoin Cash (BCH) has fallen to a low of $446 as sellers intend to push BCH price to its previous low of $387. The rejection at the $510 high signals the resumption of the downtrend.

Buyers have pushed BCH price to the $540 high three times already, but have been unable to break through $540 resistance. Selling pressure overwhelmed the bulls as the altcoin fell to a low of $480. Buyers made another attempt to push the altcoin to the previous high. The upside correction tested the $500 high twice but failed to continue. The current rejection forces the altcoin to resume a downward movement. On the downside, BCH will fall to a low of $400. The crypto will continue to depreciate if it breaks below the previous low of $387.

Bitcoin Cash indicator reading

The 21-day line SMA acts as a resistance line to BCH. In the downtrend, BCH price has encountered rejection at the 21-day line SMA. BCH is below the 20% area of the daily stochastic. This indicates that the market has reached the oversold area. It is believed that the selling pressure is likely to ease. However, in a market with a strong trend, the oversold condition may not last. BCH /USD has fallen to the 29 level of the Relative Strength Index period 14. The RSI indicates that Altcoin is also oversold.

What is the next move for Bitcoin Cash?

Bitcoin Cash has resumed its downward movement. This is after its rejection at the 21-day SMA. Meanwhile, on July 9 downtrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that BCH will fall to the 2.0 Fibonacci extensions level or the $401. 45 level.

Close Bitnami banner