Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion.
- Sellers threatened to clear the $260 level.
- Longs discouraged, which could boost sellers' efforts.
Bitcoin Cash [BCH] was at crossroads as bulls and bears battled out near the $260 level. On one hand, the bulls wish to protect the over 200% gains inflicted at the end of June. On the other hand, sellers regained control at $329 and want to extend gains beyond $260.
Read Bitcoin Cash's [BCH] Price Prediction 2023-24
In the meantime, Bitcoin [BTC] eased from its new high of $31.8k and traded at $30.3k at the time of writing. If the $30k continues to hold for BTC, BCH bulls could focus on these interest levels.
What's next for bulls?
Source: BCH/USDT on TradingView
At the time of writing, the RSI (Relative Strength Index) value was 56 but was headed to the neutral level. Similarly, the CMF (Chaikin Money Flow) edged lower toward zero. Collectively, the indicators showed eased buying pressure and capital inflows, respectively.
On the 4-hour timeframe, BCH was below $261 and had to reclaim the level to indicate bullish intent on the lower timeframe. So, sellers could force bulls to cede ground at $260 and could extend gains towards the 2020 demand zone of $200 – $222 (cyan).
Nevertheless, $261 was a key support in Q1 2022 and bulls could attempt to block further losses at the level. So a liquidity hunt beyond $261 couldn't be overruled.
Hence, conservative bulls could mark $261 as a level of interest, while the aggressive players will circle the $200 – $222 demand zone.
Long positions discouraged
Source: Coinglass
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According to Coinglass liquidations data, more long positions were wrecked in the 12-hour time frame. Notably, out of >$1.2 million total liquidations, longs saw +70% wreckage, reinforcing a bearish sentiment in the futures market.
So, sellers could attempt to extend gains towards the demand zone, especially if BTC threatens to breach the $30k level.
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