Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- BCH’s pullback reached a key interest rate level for bulls around $220.
- The main magnetic areas were around $225 and $235, based on predictive liquidation.
Like it Bitcoins [BTC] sharp drop of $30,000, Bitcoin cash [BCH] recovered after reaching $249.7. At the time of writing, BCH was positioned for a near-term price reversal of nearly $220 based on available liquidation data.
Is your portfolio green? look at the BCH profit calculator
Formerly AMBCrypto projected that BCH could fall below $225 before recovering. The idea was validated, but the decline extended to $206 in early October, impacting some long positions.
What is the future for BCH bulls in the short term?
Source: BCH/USDT on TradingView
The liquidity and price imbalance on the chart was $216 – $225 (white). The price area had a confluence with the 50-EMA (Exponential Moving Average) and a previous breakout level above $220.
At the time of writing, the price action hit the aforementioned confluence area. The pullback could ease in this area, allowing bulls to attempt to re-enter the market, especially if BTC does not post more losses in the short term. Such a move will shift BCH’s focus to $237 or the price ceiling since August of $241 – $256 (red).
Conversely, an extended pullback will force buyers to regroup at the next support and a bullish OB in H12 below $210 (cyan).
Meanwhile, the RSI and CMF recorded sharp declines at the time of writing. It demonstrated the easing of buying pressure and capital inflows amid a sharp reversal in recent hours.
Predictive liquidation was $225 and $235
Source: Hyblock Capital (H12 timeframe).
Based on Hyblock’s 12-hour Liquidation Heatmap, the key magnet areas (orange) were around $235 and $225. The orange levels are high liquidation zones and can act as support, resistance or magnetic zones.
How many Worth 1,10,100 BCHs today?
The confluence of $225 with liquidity on the charts suggested that a bullish reversal in this area was very likely. The next bullish target, based on predictive liquidation, would be $235.
However, monitoring BTC’s price action is crucial to confirm BCH’s bullish bias in the short term.
