Bitcoin Cash: Is a bearish takeover on?
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
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
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.