Connect with us
Active Currencies 14172
Market Cap $2,371,054,179,696.24
Bitcoin Share 50.57%
24h Market Cap Change $-3.35
Analysis

BCH breaks above the short-term resistance at $233 — is $250 next?

2min Read

Instead of trading the chop in the middle of the range, a more consistent trade would be to look to short the range highs at the psychological $250 resistance
Posted:
Avatar
Journalist
Bitcoin Cash [BCH]
Avatar
Journalist
Posted:

Share this article

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

  • The volume indicators showed there was some demand to drive prices higher.
  • The $250-$260 was a significant resistance zone in the past month and might not be breached quickly.

Bitcoin Cash [BCH] posted enormous gains in June. It surged from $104 to $329 but has retraced half those gains since then. The higher timeframe charts showed a clear bullish bias. Yet, in the lower timeframes, a good portion of the bullish sentiment has evaporated.

Read Bitcoin Cash’s [BCH] Price Prediction 2023-24

It is common for an asset to see a period of retracement and accumulation after a wild rally. Bitcoin Cash could be seeing one at the time of writing. It formed a short-term range- and traders can profit from this range.

BCH was at the mid-range mark, giving traders the opportunity to plan for both directions

Bitcoin Cash [BCH]

Source: BCH/USDT on TradingView

In August, Bitcoin Cash traded between $250 and $217. These levels were confirmed as the range extremities on 7 and 8 August, when the price touched the low and then the high within 48 hours.

At the time of writing the price was at the mid-range mark. However, the volume indicators showed the buyers have an advantage. The Chaikin Money Flow (CMF) was at +0.17 to signal significant capital inflow to the BCH market. The On-Balance Volume (OBV) also appeared to form a higher low and climb over the past two days.

The Relative Strength Index (RSI) jumped above neutral 50 to show bullish momentum. The market structure on the four-hour chart was also bullish after the recent lower high from 12 August at $231 was beaten on 13 August.

A steady rise in spot CVD signaled a rally toward $250 was inbound

Bitcoin Cash [BCH]

Source: Coinalyze

Since 12 August, the spot CVD has slowly trended higher. This indicated increased buying volume. In recent hours, BCH threatened to break the mid-range mark. This bounce was accompanied by rising Open Interest. Hence, speculator sentiment was bullish. Yet, the funding rate was bearish, which suggested the opposite.

Is your portfolio green? Check the Bitcoin Cash Profit Calculator

It was possible that further gains would see bulls flock to the market in the short-term and shift the funding rate positive, but as things stood a reversal from the mid-range was what traders seemed to expect.

Instead of trading the chop in the middle of the range, a more consistent trade would be to look to short the range highs at the psychological $250 resistance. Longing at the range lows was also viable.

 

Previous:
Next:

Share

Avatar
Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.