BCH Price Analysis – September 5
Bitcoin Cash extended the bullish action above $306 but declines swept in pushing back under $300.
Supply levels: $320, $330, $340
Demand levels: $260, $250, $240
Since Bitcoin Cash couldn’t break out of the descending channel to move the 21-day MA earlier this week, the price has had a bearish inclination. It became an uphill task to sustain the gains above the critical $300 due to the renewed bearish momentum emanating from the rejection around $306.
Looking at the chart, BCH/USD is changing hands at $288 and if the market price drops further, the coin could slump to the demand levels of $260, $250 and $240, bringing the price to a new low. Meanwhile, a strong buying pressure may take the price to the supply level of $305. While trading at $310, a bullish continuation is likely to touch the $320, $330 and $340 supply levels as the stochastic RSI moves into the overbought zone, indicating bearish signals when turns downward.
Comparing with Bitcoin, BCH performance has been very low due to a recurring bearish sentiment which has caused the market to fall drastically. As the price falls, sellers are posing an additional threat for buyers to reach the 0.026BTC demand level where the nearest target is located. However, an eventual break below the lower side of the descending channel may cause Bitcoin Cash to collapse.
Meanwhile, for a positive upsurge, the 0.0315BTC and 0.0325BTC are the major supply levels for the coin for now. Therefore, a negative spike could retest the important demand at the 0.0250BTC and 0.0200BTC before a possible slip to 0.0150BTC. The trading volume is fading away while the stochastic RSI is at the oversold zone, waiting for buying pressure when the indicator faces up.
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