Bitcoin Cash (BCH) continues its uptrend, breaking through resistance at $601. Buyers failed to sustain bullish momentum above the recent high on August 9, as the altcoin was pushed back.
However, after a two-day downward correction, the bulls managed to break above resistance. If the bullish momentum continues today, the market will reach the $640 high.
A subsequent upside move is possible above $700. However, the current uptrend may face resistance at the recent high. Price indicators have shown that Bitcoin Cash is trading in the overbought territory of the market. The current upward momentum may be fading. However, if the altcoin turns down from its recent high, BCH will fall and move back below that level.
Bitcoin Cash indicator reading
The altcoin has risen to level 68 on the Relative Strength Index for period 14. This means that BCH has limited room to move up. Moreover, the altcoin is approaching the overbought zone. The cryptocurrency is above the 80% area of the daily stochastic. Altcoin is in the overbought region. In the overbought area, the sellers will show up and push the prices down. The moving averages are sloping upwards, indicating an uptrend.
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 has started a new uptrend after breaking the recent high. However, the uptrend might be short-lived. Meanwhile, the uptrend from August 9 has seen a candlestick retracement that tested the 61.8% Fibonacci retracement level. The retracement suggests that BCH will rise to the Fibonacci extension at 1.618 or $535.38.
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.
