Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Sellers threatened to clear the $260 level.
Longs discouraged, which could boost sellers’ efforts.
Bitcoin cash [BCH] was at a crossroads as bulls and bears battled near the $260 level. On the one hand, the bulls want to protect the more than 200% gains made at the end of June. On the other hand, sellers have regained control at $329 and are looking to extend profits beyond $260.
Read Bitcoin Cashs [BCH] Price prediction 2023-24
In the meantime, Bitcoin [BTC] eased from its new high of $31.8k and trades at $30.3k at the time of writing. If the $30,000 continues to hold for BTC, BCH bulls could focus on these interest rate levels.
What’s next for bulls?
At the time of writing, the RSI (Relative Strength Index) value was 56, but was moving towards the neutral level. Similarly, the CMF (Chaikin Money Flow) fell to zero. Collectively, the indicators showed reduced buying pressure and capital inflow respectively.
On the 4-hour time frame, BCH was below $261 and needed to regain the level to indicate bullish intent on the lower time frame. Thus, sellers could force bulls to give up ground at $260 and could extend gains into the 2020 demand zone of $200 – $222 (Cyan).
Nevertheless, $261 was a key support in Q1 2022 and bulls might try to block further losses at this level. So a liquidity hunt above $261 could not be overruled.
Hence, conservative bulls may mark $261 as the interest level, while the aggressive players will circle the $200-$222 demand zone.
Long positions are not recommended
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More long positions were destroyed in a 12-hour span, according to Coinglass liquidation data. In particular, total liquidations of > $1.2 million saw longs +70% wreckage, reinforcing bearish sentiment in the futures market.
Thus, sellers could try to extend profits into the demand zone, especially if BTC threatens to cross the USD 30,000 level.
This post Bitcoin Cash: Bulls and bears battle for $260
was published first on https://ambcrypto.com/bitcoin-cash-bulls-and-bears-tussle-for-260/