Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
- Bitcoin Cash could see a dip towards $240 or lower in the near term, which would provide a buying opportunity
- The move above $250 and subsequent retest indicated a buyer-dominated market
Bitcoin cash [BCH] witnessed strong buying pressure over the past ten days. The price action also reflected bullishness. Additionally, the token scaled a higher timeframe resistance zone at $250 to convert it into a demand zone.
Read the one from Bitcoin Cash [BCH] Price forecast 2023-24
The higher time frame charts such as daily and weekly reflected a solid bullish bias for BCH. June’s rally from nearly $100 to $329 saw a healthy retracement to $180 before another move higher.
H12’s bearish order block was finally broken
Source: BCH/USDT on TradingView
The price action on the four-hour chart indicated bullish intentions. The market structure and momentum both showed that further gains were possible. On-Balance Volume (OBV) was also in an uptrend. While the trend was initially slow in September and early October, intense buying pressure in mid-October caused the OBV to skyrocket.
This increase in trading volume was reflected in the volume bars and was a sign of conviction in the market. The cyan box at the psychological level of $250 represented a former bearish order block from the H12 period, which reversed to support on October 23. The Fibonacci levels (light yellow) plotted for the recent rally marked some extension levels that could oppose the bulls at $284, $301 and $309.
Therefore, it was possible that the bulls would force another rally. The higher time frame liquidation heatmap as BCH showed the next area of interest was $300. Furthermore, the $275 price can also be considered as a level that could provide some resistance.
BCH could see a small retracement in the near term
Source: Hyblok
The liquidation levels chart showed that some short liquidations could be triggered on a move towards the $265 zone. This could encourage more traders to go long with increasing aggression, increasing liquidity in the south.
How much is 1, 10 or 100 BCH worth today?
The Cumulative Liq Levels Delta was positive, but not overwhelming. Therefore, a move towards $265 and a retracement was a possible scenario. Another thing traders can watch for is a dip into the $235-$245 region.
This could present a buying opportunity targeting $284 (Fib extension level) or higher, with a good chance of success. As always a Bitcoin [BTC] In the event of a decline, bearish sentiment would take control in the short term.
