Bitcoin took a bearish turn in the past 24 hours as the price failed to rise above the $44.5k resistance and instead fell below $42k to trade at $40.6k at the time of writing. Bitcoin Cash was heavily influenced by Bitcoin’s movement. A jump to $327 for BCH would be for sale, while a drop to $290 could be a buying opportunity.
BCH-1H
Source: BCH/USDT on TradingView
In the past two weeks, the price of BCH has been trading above the USD 316 level. This level was the 50% Fibonacci retracement level, based on BCH’s shift from $271 to $362. However, the day prior to press time, BCH started a southward move after rejecting it at the $344 level. For a few hours, BCH has even fallen below USD 316, marking it as a resistance level in the near term.
The horizontal support of $302 and the 61.8% retracement level at $306 are places where bears would like to profit from their short positions. At the time of writing, the market structure had flipped to bearish – BCH was unable to break above $344 (resistance) and the $318 (most recent higher low) level had also broken.
rode
Source: BCH/USDT on TradingView
The price made a series of lower hour lows just prior to writing, even as the momentum indicator made higher lows. This suggested a bullish short-term divergence, which could cause the price to rise slightly.
The RSI had climbed out of oversold territory but still reflected the strong bearish momentum seen over the past few hours. The 37 level could be important in the coming hours – a rejection here on the RSI could set BCH off to another leg down.
The Cumulative Volume Delta showed that while sales volume has been strong recently, last week’s purchasing volume was slightly more than sales volume. That won’t stop a move down, though.
Conclusion
To summarize – although the market structure had turned bearish and the weekend was approaching. Bitcoin had liquidity of USD 42k and USD 39k, and the transition to one of these levels can be seen in the coming days. Bitcoin Cash, in turn, could rise to $327 or fall to $290 before moving in the opposite direction after accumulating liquidity at these levels.
Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
This post Investigating the Bearish and Bullish Short-Term Cases for Bitcoin Cash
was published first on https://ambcrypto.com/exploring-the-short-term-bearish-and-bullish-cases-for-bitcoin-cash/
