Bitcoin Cash [BCH] holds onto $210; can buyers push it past $220?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BCH held onto the $210 price zone, as buyers continued to push for further gains.
- Sellers were caught out by the price pump and registered losses worth $650k.
Bitcoin Cash [BCH] consolidated its gains above $210 with a 5% pump over the past day. This pushed it closer to the $220 level which has served as an obstacle to recent bullish gains.
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In the meantime, Bitcoin [BTC] continued its gentle recovery from the $26k price level after its sharp drop from $27k.
Can the bulls finally cross the $220 hurdle?
Despite Bitcoin Cash’s bullish rebound from the $186 support level, the $220 to $230 price zone has stood in the way of further gains for bulls.
Buyers have been rejected twice at the level on 29 August and 15 September. However, BCH’s recent price action along with on-chart indicators suggested buyers could be gaining the upper hand.
The Relative Strength Index (RSI) climbed above the neutral 50 mark and stood at 58, as of the time of writing. This was indicative of rising buying pressure. Similarly, the Chaikin Money Flow (CMF) highlighted growing capital inflows with a reading of +0.05.
If bulls successfully cross the $220 hurdle, further gains can be achieved at $240 to $250. A drop below $200 will invalidate this bullish thesis and could see BCH retest the $186 support level.
Shorts register huge losses
According to data from Coinglass, BCH shorts in the derivatives market suffered massive losses over the past 24 hours. Shorts recorded losses worth $650k, amounting to 95.11% of the total liquidations within the period.
Read Bitcoin Cash’s [BCH] Price Prediction 2023-24
This massive liquidation of selling positions favored buyers as they gained more market edge, as demonstrated by the 51% share held by longs on the exchange long/short ratio.