Bitcoin Cash consolidates gains above $210 – Should you long it? 

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• BCH faltered near the $220-mark but has consolidated above $210 since 15 September
• Open Interest rates improved; $210-level was a key liquidity level

The crypto-market registered an impressive recovery in the third week of September. Bitcoin [BTC] led the pack after reclaiming the $26k-level. However, one of the best performances was Bitcoin Cash’s [BCH] +20% gain after jumping from $180.5 to >$220. 

Is your portfolio green? Check out the BCH Profit Calculator 

Now, while the recovery faltered at $220, BCH bulls defended the $210-level, pushing the altcoin into a short-range formation on the 4-hour timeframe since 15 September. 

Will the range extend for bulls to exploit?

Source: BCH/USDT on TradingView

Similarly, the Relative Strength Index (RSI) retreated from the overbought zone but bounced from the 50-mark. It demonstrated that buying pressure eased but picked up slight momentum, at the time of writing. 

On the 4-hour chart, the price has been oscillating between $220 and $210 in the past two days. With the FOMC Meeting scheduled for 20 September inching closer, a range extension was likely in the next few hours before a spike in market volatility. 

If so, BCH could target the range-high near $220.7, offering bulls extra 3.96% gains from the range-low and short-term support of $210.7. 

An extended drop below $210 could ease at the H12 bullish order block (OB) of $198 – $203 (cyan). However, such a move will invalidate the long set-up. 

Improvement in Open Interest rates

Source: Coinglass

According to Coinglass, BCH’s Open Interest rates stagnated below $230 million in early September but registered an uptick above $250 million from 13 September. It is a sign of bullish bias as demand for the token increased in the derivative market. 

How much are 1,10,100 BCHs worth today? 

The weekly liquidation map for the BCH/USDT pair on Binance (Futures market) showed that the $210-level had a Cumulative Long Liquidation Leverage of >$900k. This was the closest liquidity area to price action at press time.

The inference from the aforementioned is that BCH could see strong price reaction at the level, cementing it as a crucial short-term support. 

Source: Coinglass