Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Bitcoin Cash could see a short-term dip toward $240 or lower, which would present a buying opportunity
- The move above $250 and the subsequent retest signaled a buyer-dominated market
Bitcoin Cash [BCH] witnessed strong buying pressure over the past ten days. The price action reflected bullishness as well. Additionally, the token scaled a higher timeframe resistance zone at $250 to flip it to a demand zone.
Read Bitcoin Cash’s [BCH] Price Prediction 2023-24
The higher timeframe charts, such as daily and weekly reflected a firm bullish bias for BCH. The rally from near $100 to $329 in June saw a healthy retracement to $180 before another move higher.
The H12 bearish order block was finally breached
Source: BCH/USDT on TradingView
The price action on the four-hour chart signaled bullish intent. The market structure and momentum both showed further gains were possible. The On-Balance Volume (OBV) was also in an uptrend. While the trend was initially slow in September and early October, the intense buying pressure in mid-October saw the OBV rocket higher.
This increase in trading volume was reflected on the volume bars and was a sign of conviction in the market. The cyan box at the psychological $250 level represented a former H12 bearish order block that was flipped to support on 23 October. The Fibonacci levels (pale 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 bulls would force another rally. The higher timeframe liquidation heatmap for BCH showed the next area of interest was at $300. Furthermore, the $275 price point could also be considered as a level that could offer some resistance.
BCH could see a minor retracement in the short-term
Source: Hyblock
The liquidation levels chart showed some short liquidations could be triggered upon a move to the $265 zone. This could entice more traders to go long with increased aggression, thereby building liquidity to the south.
How much are 1, 10, or 100 BCH worth today?
The Cumulative Liq Levels Delta was positive but not overwhelmingly so. Therefore, a move toward $265 and a retracement was a possible scenario. Another that traders can watch out for is a dip to the $235-$245 region.
This could present a buying opportunity targeting $284 (Fib extension level) or higher with a good probability of success. As always, a Bitcoin [BTC] drop would see bearish sentiment seize control in the near term.