Bitcoin Cash (BCH) Consolidates Above $230, May Resume Uptrend

Estimated Reading Time: 2 minutes

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Azeez Mustapha

Updated: 13 October 2022

Key Resistance Levels: $275, $300, $350
Key Support Levels: $200, $160, $120

BCH/USD Price Long-term Trend: Bullish
The bulls have been battling to overcome the $280 overhead resistance. In its last attempt to break above the overhead resistance, BCH encountered a breakdown. Since May 10, it has been consolidating above $230 support after the breakdown. As price is below the SMAs, the downward move may continue. BCH may reach a low of $220 if the selling pressure continued.

Daily Chart Indicators Reading:
The 21-day SMA and 50-day SMA are sloping upward. BCH has fallen to level 48 of the Relative Strength index period 14. This indicates that the market is in the downtrend zone. BCH is likely to fall

BCH/USD Medium-term Trend: Ranging
On the 4-Hour chart, BCH is in a sideways move. The bulls have been attempting to break the overhead resistance at $280. Each time price tests the resistance zone, the market will fall on either $230 or $240 resistance. Presently, price is consolidating above $230.

4-hour Chart Indicators Reading
Bitcoin cash is above 80% range of the daily stochastic. The crypto is in the overbought region. The implication is that sellers may emerge to push prices downward. BCH is in a ranging market; it may fall and reach a low of $230 or $220.

General Outlook for Bitcoin Cash (BCH)
BCH is in a downward move after the breakdown from the $280 resistance. The selling pressure is likely to continue as the coin is in the overbought region. At the moment, a bearish candle is finding support above 21-day SMA.

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