At the beginning of this month, Bitcoin Cash was valued at $420. Since then, it’s made fast progress, but Bitcoin Cash has reached a ceiling of $770 and hasn’t been able to revisit those highs in the past few days. The $740 level has also served as a stubborn resistance in the short term. BCH threatened to fall under the range it had formed, and such a slip could push prices as far south as $580.
Bitcoin Cash 30-minute chart
Source: BCH/USDT on TradingView
A spectrum between $650 and $770 has been plotted on the maps. The yellow levels reflect a degree of importance within the range that could be covered by the price, with particular focus on the mid-point of the range at $709. The mid-point of the range is the most important stage within the range, and ceding it to bears does not bode well for BCH in the short term.
Market Rationale
Over the last few days, the OBV has been falling downwards alongside BCH’s losses. This showed that real sales pressure was behind the recent losses of the coin. In the long run, this was only a blip on the wide upward spikes the OBV has posted – but in the short run, the downtrend of the OBV is important.
The RSI also slipped below neutral 50 and proceeded to remain below it to indicate bearish pressure.
The trading volume was stable, but the loss of $709 was followed by a surge of intense sales. This demonstrated investor conviction on the side of bears.
Levels to watch out for
The $709, $679, and $650 are the most critical levels to track over the next few days. Losing $679 is likely to see BCH driven down to $650, where the market will once again see a fierce skirmish between buyers and sellers.
Defending the $679 level will give the bulls some traction to try again to scale $709.
Conclusion
In the next few days, it will be better to gauge market sentiment at some levels before deciding to enter the market. A visit to $650 will reflect an opportunity to either buy or take a short position on the basis of the price reaction at that mark. Reclaiming the $709 level as help after bouncing off $679 will also be a purchasing opportunity.
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