Investors, who are keeping a close eye on Bitcoin Cash and want to avoid losses, should stay away from these crucial price points.
As of this writing, Bitcoin is still showing little upside, despite missing some numbers from its price. BTC has fallen below the $20K mark, and is now trading at 19998 dollarsaccording to data from Coingecko.
Short-term support for the bears came from the rejection wicks at the $20.5K level. Even Bitcoin Cash, the fork of BTC, is not immune to this problem.
BCH is in such congestion, despite Bitcoin losing the $20k psychological support.
There have been recent reports regarding a number of developments with potentially profound implications for the BCH. This report indicates that Bitcoin Cash transaction volume was below average 27,734 daily transactions.
Low transaction volumes are a negative indicator for both potential and existing BCH investors, and so this could be a problem.
Bitcoin Cash: A massive wall of bulls
The value of Bitcoin Cash fell 35.50% between the high of July 29 and the low of September 19, before rebounding by 17.40%. After that time, the price of Bitcoin Cash has remained stable.
These days, you can buy Bitcoin Cash for as little as $96,559 and as much as $166.025. Moreover, BCH has a support level at $112,246 and a resistance level at $125,912.
Although the CCI and Stoch RSI readings are optimistic, the mentioned resistance level remains a formidable obstacle for the BCH bulls to overcome.
Although the Chaikin Money Flow Index is bullish, it is establishing a downtrend, indicating that the selling pace is increasing.
On the other hand, the grim prognosis of CMF is more pronounced in the 4-h time scale.
The 4-hour CMF is -0.05, indicating that sellers dominate the BCH market. Currently, the question is whether BCH can still recover.
Is recovery possible? or further backtracking?
The BCH support line remains unchanged. However, there are two levels of resistance that investors and traders should target: $125,912 and $138,835.
The previous level was breached twice on August 23 and September 9, but the bulls were unable to sustain the break, which sent the price down to $112,246.
The breakout of the resistance level of $125,912 can be interpreted as a psychological buying signal for investors. Since the fall of September 13, a modest uptrend has developed in the 4-hour period.
A strong close in today’s trade could help the bulls maintain momentum and finally surpass the indicated resistance levels.
BCH market cap at $2.28 billion | Featured image from CriptoFacil, Chart: TradingView.com