Can Bitcoin Cash go up Or will BCH Fall after a slight rise?
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Disclaimer: The information presented is not financial, investment, trading or other advice and is the opinion of the author only.
Bitcoin Cash recently
- The bearish market structure for BCH on higher timeframes
- A break above $109 to $114.9 is likely to be the point of interest for both the bulls and the bears.
Over the past two days, Bitcoin has been able to defend the $15.7k-$16.3k area. To the north, a significant resistance area lies at $18,300. The entire $17.7k to $18.6k region could see increased selling pressure, should BTC reach that level. Bitcoin Cash also shows some bullish strength on the lower timeframe.
However, its outlook on the daily chart continues to trend down. Until the BCH bulls can push the price back above $120.9, this bearish outlook is likely to hold. Should traders be looking to sell when the price bounces or can they wait for a rally above $120.9 to look to buy the coin?
Will BCH go down after a small raise
Based on the high and low of $126 and $87 respectively, a set of Fibonacci retracement levels have been plotted. It shows a 61.8% and 78.6% retracement of $111.1 and $117.7 respectively.
Bitcoin Cash quickly bounced from a low of $87 and briefly appeared above the $100 mark on Nov. 10. Since then, its recovery has slowed. On the daily timeframe, the market structure remains bearish.
On November 8, the rapid pace of selling caused underperformance on the daily chart. This is highlighted by the gray box and has a confluence with the golden Fibonacci pocket. On top of that, $119.4 is a significant level over the past few days. A 1-day close above this level means the market structure has turned to an uptrend.
Technical indicators also show some strength from the sellers. The Relative Strength Index (RSI) is below the neutral 50, although it signals more neutral momentum at 45. Chaikin Money Flow (CMF) is also up to -0.04, which means the inflow capital out of the market decreased. in the past days.
As a result, traders will likely see the price bounce back to the $112-$115 area. The bearish stance in this area will see a clear invalidation above $119.4, while take profit can be placed at $100 and $89.
BCH 90-day MVRV
In recent months, almost every time the 90-day market-to-value ratio (MVRV) enters the positive zone, prices have experienced significant selling pressure. Most recently this happened on Nov. 4. Soon after, on November 5, BCH made a local top at $126.1 before dropping rapidly.
At press time, MVRV is still in the negative zone. However, switching to 4% or 5% values may be something to watch out for. Meanwhile, the social dominance of Bitcoin Cash in November has seen a slight increase.
Nov 16, 2022