Bitcoin Cash Price Forecast: BCH plummets after encountering massive resistance – Confluence Detector


  • Bitcoin Cash has dropped down after bulls ran out steam near the $260 resistance level.
  • The whales have been quietly accumulating more tokens, which is a positive sign.

Bitcoin Cash enjoyed a bullish upswing between October 7 and October 15, wherein the price went up from $220 to $262. After encountering heavy resistance, the peer-to-peer electronic cash has plummeted to $249.50. In the process, it has managed to drop below the 100-day and 200-day SMAs. The price had since recovered above the latter.

BCH/USD daily chart

BCH/USD daily chart

The daily confluence detector well defines these strong resistance lines for BCH. The confluence detector is a handy tool that helps us visualize strong resistance and support levels. The 100-day SMA coincides with the strong resistance, as shown by the detector. If the price breaks below the 200-day SMA and $242 support line, the next healthy support lies at the 50-day SMA ($235).

BCH confluence detector

fxsoriginal

The Flipside: Can the BCH bulls launch a fightback?

The bulls can launch a fightback if they manage to flip 100-day SMA from resistance to support. If they do that, they will gain enough momentum to conquer the $262 resistance line, as well. The bulls will be encouraged by the whales' actions, who have been on a buying spree. As per Santiment, the number of addresses holding 10,000-100,000 BCH went up from 167 on October 14 to 169 on October 16.

BCH holders distribution

fxsoriginal

Key price levels to watch

The bears can stay in control if they regain the 200-day SMA ($245) and flip it from support to resistance. Following that, the sellers will look to conquer the $242 support line. The downside can be capped at the 50-day SMA ($235).

The bulls will need to flip the 100-day SMA ($255) from resistance to support and aim for the $262 resistance line. If this level is conquered, Bitcoin Cash should be able to reach the $290 resistance barrier.   

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP