Bitcoin Cash Slumps below the Critical Support Level of $200

Bitcoin Cash Slumps below the Critical Support Level of $200

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

BCH/USD Price Long-term Trend: Bearish
Today, BCH falls to a low of $169 after price breakdown. Earlier on, BCH has been fluctuating above $270 price level. The bulls have been defending the support level.BCH will be in an upward move if the support is holding. However, there was intense selling pressure as price encountered a breakdown.

The price broke the support levels of $240 and $200 to reach a low of $169. BCH has reached an incredible low. The current price is below the critical support level of $200. This portends negatively for the coin. The coin fell to the low of $169 but has moved up to $194.

BCH/USD – Daily Chart

Daily Chart Indicators Reading:
After the recent breakdown, BCH is below 20% range of the daily stochastic. This implies that BCH is in the oversold region of the market. In the oversold region, buyers are expected to emerge to push BCH upward. Selling pressure has been exhausted.

BCH/USD Medium-term Trend: Bearish
On the 4-Hour chart, the coin was consolidating above $270 support level when the breakdown occurs. From a high of $270, BCH drops to $169 but has since risen. BCH will rise if the current support at $160 holds.

BCH/USD – 4 Hour Chart

4-hour Chart Indicators Reading
BCH has fallen to level 15 of the daily Relative Strength Index period 14. The market is in the oversold region of the market. By default, buyers will emerge to push BCH upward. Selling pressure has been exhausted.

General Outlook for Bitcoin Cash (BCH)
Bitcoin Cash has fallen below the critical support level of $200. The image of BCH has been dampened. BCH fell to the previous low of December 2019 but pulled back to the low of $169. Traders are to initiate long orders but place their stop loss at $160.

Bitcoin Cash Trade Signal
Instrument: BCH/USD
Order: Buy
Entry price: $194
Stop: $160
Target: $360

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.