Bitcoin Cash: Sellers look to extend gains
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bearish trendline curtailed bullish rebound, leading to more gains for sellers.
- Negative funding rate could spur further shorting opportunities.
Bitcoin Cash’s [BCH] price action continued to dip slowly after another rejection at a critical price level. Bulls had made some progress with their goal of reversing recent losses after a steep dip from its 2023 high.
Read Bitcoin Cash’s [BCH] Price Prediction 2023-24
However, the combination of critical resistance levels and a bearish trendline limited any bullish rebound. With Bitcoin [BTC] continuing to range between $29k and $29.4k, a lack of buying pressure can extend gains for sellers.
Critical price hurdles limit bullish reversal
Bitcoin Cash’s ranging price movement along the critical $248 price level has come to a headlong over the past 72 hours. The price report highlighted the importance of the level to a continuation of the bearish trend or a bullish reversal.
The bullish attempt to take the level on 1 August was swiftly curtailed due to the confluence of selling pressure in the market and the bearish trendline. This led to a further price drop with BCH trading at $227, as of press time.
Sellers looking to ride the bearish wave can wait for a retest of the bearish trendline for new shorting opportunities. Sellers can target profit levels at $190 – $210. On the flip side, a bullish reversal will have to break above the bearish trendline for steady gains.
The RSI remaining under the neutral 50 and the OBV continuing to slope downwards reinforced the bearish dominance.
BCH buyers thwarted in futures market
How much are 1,10,100 BCHs worth today?
The four-hour Open Interest data from Coinalyze revealed bearish market sentiment. The extended decline of the OI showed frustrated long-position holders being forced to liquidate their positions.
Similarly, the funding rate flipped negative. This suggested the market conditions were encouraging sellers to open more short positions in the near term.