Since it has broken below the $110 level of support, the price of Bitcoin Cash (BCH) is currently in a downward trend.
Long-term outlook for the price of Bitcoin Cash is negative.
Since August 19, the cryptocurrency’s price has been trading below the lines that represent its moving average. Buyers have been exerting a lot of effort to hold the price above the moving average lines, but their efforts were unsuccessful when the price reached the high of $132. To put it another way, throughout the course of the last month, the BCH/USD exchange rate has fluctuated between $110 and $132.
The altcoin would rocket higher till it met resistance at $164 if it were to break over the previous high of $132. After a recent plunge, the price of cryptocurrency is regaining some ground today and is consolidating above the $110 support level. The 21-day simple moving average (SMA) for BCH was broken on September 18 and support was located above the $110 level. If the current support is breached, the downward trend will continue until it reaches the low of $96.
The indication display for Bitcoin Cash
In terms of relative strength, the digital currency is currently at level 41 for the period 14. It is in the zone of a downtrend and there is a possibility that it will fall even farther below the existing support. The fact that the moving average lines of the cryptocurrency’s price bars are now below them signals that the price will continue to fall. The price of bitcoin is currently trading at a level that is higher than the 50% area of the daily stochastic. The momentum for BCH is now bullish.
Indicators of a Technical Nature
Important areas of resistance: $130 and $150
Important support zones: $120 and $100
What should we expect from Bitcoin Cash going forward?
BCH is currently in a bearish trend as it was rejected at the 21-day simple moving average (SMA). During this time, a retraced candle that was part of the downward trend that began on September 13 tested the 78.6% Fibonacci retracement level. Following the retracement, it is likely that BCH will drop to the Fibonacci extension level of 1.272, which is equivalent to $110.62.