Connect with us
Active Currencies 14437
Market Cap $2,624,013,348,516.30
Bitcoin Share 50.19%
24h Market Cap Change $-4.10

Bitcoin Cash: Is a bearish takeover on?

2min Read

Bitcoin Cash eased below $250 with bears looking to seize control from bulls. With short positions at a greater advantage at the time of writing, the question remains: are bulls out of fuel?

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 bullish rally continued to wither, as BCH dipped below $250.
  • Shorts held a 52.21% advantage on the exchange long/short ratio.

Bitcoin Cash [BCH] went on a remarkable bullish rally in late June that launched it to a 2023-high of $329. However, July brought a change of fortunes for BCH, as bears formed a resistance level at $311 which led to a 30% dip.


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


While buyers are still up significantly, sellers can advance the bearish momentum with its price currently trading below $250. BCH bulls could see more of their gains erased if Bitcoin [BTC] continues its price correction under $30k.

Sellers primed to flip price momentum

Bitcoin Cash (BCH) price chart on dark background with green and red price bars

Source: BCH/USDT on Trading View

The on-chart indicators hinted at a change in momentum for BCH. The Relative Strength Index (RSI) remained under the neutral 50 and continued to edge toward the oversold zone. The Chaikin Money Flow (CMF) also stayed negative with a reading of -0.14. Collectively, the indicators revealed declining buying pressure and strong capital outflows.

The 12-hour timeframe showed that bears had broken below the key $248 support level. With declining volume, bulls could lose more ground with sellers looking to drive the price to the $186 – $220 level.

Nonetheless, another rally by BTC to $31k could prop up Bitcoin Cash at the current support level with bulls able to target the $280 price level.

Shorts hedge bets on further dips

Source: Coinglass


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


According to Coinglass’ long/short ratio, shorts had a greater share of the open contracts for BCH. Shorts had a 52.21% share compared to longs 47.79% share. This reinforced the bearish sentiment in the futures market.

This could see sellers extend their gains toward the critical $186 – $220 level, especially with Bitcoin continuing to trade below $30k in the meantime.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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.