Bitcoin Cash (BCH) May Continue Selling Pressure If Price Breaks Below $360

Bitcoin Cash (BCH) May Continue Selling Pressure If Price Breaks Below $360

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

BCH/USD Price Long-term Trend: Bearish
Recently, Bitcoin Cash achieved 90% gains from the bear market after it reached a high of $495. Unfortunately, the bulls were resisted as the coin was in the overbought region of the market. In the overbought region, buyers are not available to push the coin upward.

Rather, sellers are on hand to push the coin downward. BCH fell to a low of $370 and continued fluctuation above the current support. On the downside, the selling pressure will continue if the bears break below $360. On the upside, the upward move will resume, if the current support holds.

BCH/USD – Daily Chart

Daily Chart Indicators Reading:
Bitcoin Cash has fallen to level 43 of the Relative Strength Index. This indicates that the coin is in the downtrend zone. It is also below centerline 50. Previously, the RSI was above level 81 when the BCH reached a high of $495. Presently, BCH has dropped from $495 to $379 at the time of writing.

BCH/USD Medium-term Trend: Bearish
On the 4-Hour chart, the bulls were resisted at the overhead resistance but the coin made a gradual fall. On February 15, the coin fell to the low of $425, but the bulls pulled back to retest the resistance at $450. The coin dropped again to the low of $370 but the bulls defended the support and made an upward move. The upward move was resisted at $425, and then the price dropped again to the low of $370.

BCH/USD – 4 Hour Chart

4-hour Chart Indicators Reading
BCH is now trading below 20% range of the daily stochastic. This implies that BCH is in the oversold region of the market. BCH is in strong bearish momentum in the oversold region. The price breaks the bullish trend line and closes below it. This indicates that the previous trend has been terminated.

General Outlook for Bitcoin Cash (BCH)
Bitcoin Cash is in a downtrend. The coin has entered the oversold region indicating that price is in a strong bearish momentum. The bears may push the coin downward if the momentum is strong. The implication is the current support may be breached.

Bitcoin Cash Trade Signal
Instrument: BCH/USD
Order: Sell
Entry price: $379
Stop: $400
Target: $300

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.