Bitcoin Cash: Are BCH bulls about to lose $210 to the bears
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BCH struggled to defend the $210 level after facing rejection at $220.
- The long-term trend was still positive, but demand dropped.
Despite Bitcoin Cash [BCH] bulls defending $210, sellers were interested in cracking the level. After unsuccessful attempts at reclaiming $220, bulls opted to secure $210. However, the selling pressure intensified at press time.
How much are 1,10,100 BCHs worth today?
In the meantime, Bitcoin [BTC] struggled to hold on to $27k at the time of writing. With September’s Fed decision out of focus, there were no major catalysts in the short term that could drive price action apart from pending Ethereum [ETH] ETF approvals.
What’s next for BCH?
The short-term support of $210.7 aligned with the 50-EMA (Exponential Moving Average). Sellers were unable to push BCH below the 50-EMA at press time.
If BTC holds above $27k, BCH could extend consolidation and lock recent gains above $210. The CMF moved sideways but was above zero, reiterating capital inflows were positive but wavered.
However, the selling pressure intensified in the past few days, as reinforced by the negative RSI. So, a drop below 50-EMA and $210.7 could tip sellers to extend gains to $205 (recent low) or the H12 bullish order block (OB) of $180 – $203 (blue).
Demand dropped in the Futures market
The demand for BCH declined significantly in the Futures market between 15-20 September, as shown by the Open Interest rates. The metric eased from $250 million to around $214 million over the same period.
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The dip in demand favored sellers as they gained more market edge, as demonstrated by the declining Cumulative Volume Delta.
Nevertheless, the long-term trend was positive, as indicated by the positive Accumulative Swing Index (ASI). The ASI tracks the strength of price swings, and a drop to a negative reading could suggest BCH’s bearish long-term trend.