These price points are crucial for investors who want to keep an eye on Bitcoin Cash but not lose their money.
Bitcoin still shows a bit of bullishness as of the writing of this article, even though it has lost a few digits in price. According to Coingecko data, Bitcoin traded at $19.998 after it fell below $20K.
The rejection wicks of the $20.5k mark provided bears with short-term support. Even Bitcoin Cash, the fork of BTC, isn’t immune to this issue.
BCH is in such a jam, despite Bitcoin losing the $20k psychological support.
Recent reports have highlighted a variety of recent developments that could have profound consequences for Bitcoin Cash. This report indicates that Bitcoin Cash’s transaction volume has been below the average of 27,734 daily transactions.
Low transaction volumes can be a problem for both existing and potential investors in BCH.
Bitcoin Cash: A Formidable Wall for The Bulls
Bitcoin Cash’s value fell 35.50% between the July 29 rally and the September 19 low, before rebounding 17.40%. After that time, however, Bitcoin Cash’s price remains stable.
You can now buy Bitcoin Cash starting at $96.559 or $166.025. BCH also has support at $112.246 as well as resistance at $125.912.
Even though CCI and Stoch RSI reads look optimistic, it is still a huge obstacle that bulls of BCH must overcome.
Although the Chaikin money flow indicator is positive, it’s establishing a downward trend, which indicates that selling velocity is rising.
The CMF index’s gloomy prognosis, on the other hand, is more pronounced on the 4-hour time range.
CMF 4 hours is at -0.05. This indicates that the sellers are taking control of BCH. The current question is whether BCH could still recover.
Possibility of Recuperation Oder a further decline?
BCH’s support line remains the same. However, traders and investors should aim for $125.912 resistance and $138.835.
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The former level was breached twice on August 23 and September 9, but the bulls were unable to sustain the break, resulting in a price decline to $112.246.
An investor can take a break of $125.912 resistance as a psychological buy signal. On the four-hour timeframe, a slight uptrend was observed since September 13.
A strong closing in today’s trade could aid the bulls in maintaining momentum and finally surpassing the indicated resistance levels.
Featured Image from CriptoFacil Chart: TradingView.com| Featured image from CriptoFacil, Chart: TradingView.com