BCH Price Analysis – January 21
BCH/USD seems to be caught between the bull and the bear, while the price of the cryptocurrency fluctuates in sideways.
Resistance levels: $380, $390, $400
Support levels: $270, $260, $250
BCH/USD has been showing an uneven movement with several falls more than rises and it has not been able to maintain a consistent bullish run. However, the coin may continue to show some signs of a downward movement slowly till the latter part of the day. Meanwhile, for the past few days, the market has been forming a pattern where the day begins with either having an uptrend or downtrend, but towards the end, it reverses.
Looking at the daily chart, BCH/USD price has continued to consolidate itself in a flag formation, waiting for a cross below the 9-day moving average. More so, the daily breakdown reveals that BCH/USD dropped to $333.07 at the opening of the market today after which it corrected itself to where it is trading currently at $341.80 level. If the support gets weak, a price break-down may occur as the bears may find new weekly lows at $270, $260 and $250 support levels.
Nevertheless, a bullish step back may likely roll back the market to $380 resistance level with a possible break out of the channel and could move towards the $390 and $400 resistance levels, establishing a new weekly high for the market. At the moment, the RSI (14) indicator has been moving in the same direction under the oversold zone. A bullish cross might reveal a buy signal for the market.
Comparing with Bitcoin, the recent sideways movement is due to the price stability in BCH trading which shows that the resistance-support is at equilibrium. Another thing to note here is that the market is preparing to change the trend and a short-term bearish breakout is most likely to play out because the technical indicator RSI (14) moves below the 68-level and this could find the nearest support levels at 0.035 BTC and below.
However, the only condition for the continuation of the bullish trend is if the 0.039 BTC level can continue to provide support for the market, then the price may be pushed to the resistance level of 0.042 BTC and above. Meanwhile, the BCH/BTC pair continues to remain in sideways movement hovering above the moving averages.
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