Bitcoin Cash Price Prediction: Bears in control as price looks to dip below $250 – Confluence Detector


  • BCH bears have remained in control after price charted an evening star pattern.
  • The hourly chart has flashed the sell signal with a green nine candlestick in the TD sequential indicator.

Bitcoin Cash went up from $208 on September 23 to $276 on October 24. Following this move, the bulls and bears have engaged in a tug of war for control over the market, with the price jumping up and down. At the time of writing, the Bitcoin fork charted an evening star pattern and is now trading for $262. The MACD shows increasing bearish momentum, so a further break is expected.

BCH/USD daily chart

BCH/USD daily chart

The confluence detector helps visualize strong areas of support and resistance. As you can see, $261 has critical support, which is holding the price up. BCH will look to break below this level to continue the downward trend. The 100-day SMA ($257.50), 200-day SMA ($248) and 50-day SMA ($239) provide further support on the downside.

fxsoriginal

BCH daily confluence detector

The hourly chart adds further credence to this grim outlook. As can be seen, the hourly BCH price charted a morning star pattern n October 30 and flew up from $256.60 to $264. However, at this point, the price flashed a sell signal in the TD sequential indicator, in the form of a green nine candlestick. Since then, the price has dipped under constant selling pressure.

BCHUSD hourly chart

BCH/USD hourly chart

Can the bulls flip the script?

While the overall outlook looks very bearish, the bulls can still salvage something. The key here is the $261 support wall. If it holds strong, the buyers will be able to bounce up from it and take the price to the $271 resistance line. Breaking past that barrier should take them to the $300 zone.

Key price levels to watch

For both the buyers and the sellers, the $261 support line is the key. By breaking below this level, the bears will aim to go below the $250-mark. To do so, they must break below the 100-day SMA ($257.50).

They will look to bounce up from this support and break past the $271 resistance barrier for the bulls. By doing that, they should reach the $300-mark.
 

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

MATIC price goes cold, as Polygon financial metric offers an interesting twist

MATIC price is up 47.66% since July 21, establishing one of the better rallies in the cryptocurrency complex over that time. The rally has placed Polygon at the junction of the symmetrical triangle’s apex with the 50-day SMA at $1.07. 

More Polygon news

Cardano price action and on-chain metric collide, reveals a complex situation for ADA

The price staged a rebound in Jul after dropping near the 38.2% Fib retracement at $0.971, marking the fifth consecutive month of a bullish reversal from the level. ADA has shaped a head-and-shoulders pattern with a measured move of approximately 60%.

More Cardano news

VeChain Price Forecast: VET postures for a 40% gain as energy builds

VeChain price has built on the rebound from the 50-week SMA, registering a 15.21% gain last week and closing July with a minor decline of -1.64%. The persistence of the Anchored VWAP has been containing a rally continuation since the July 26 high.

More VeChain news

Three reasons why Shiba Inu price will quickly drop 45%

Shiba Inu price has trended lower in a descending parallel channel since the May crash, offering only brief opportunities from low probability patterns or setups. The weak performance is a marked deviation from the extreme price events in early May.

More Shiba Inu 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