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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin at $5,000 charts begin to pop up on Twitter, how likely is such a massive correction?

It’s not uncommon to see considerable corrections in the market after massive rallies like the one Bitcoin is experiencing. Around $80 billion were wiped out from the market in less than 24 hours, and some analysts believe the price could go even lower.

More Bitcoin News

Ethereum transaction fees skyrocket as price collapses

At the time of writing, Ethereum (ETH) is trading at $520. The second-largest digital asset, with the current market capitalization of $59 billion and an average daily trading volume of $30 billion, has lost over 12% on Thursday. However, it is still in a green zone on a week-to-week basis.   

More Ethereum News

Cardano Price Prediction: ADA must overcome a massive supply barrier to extend a recovery

Cardano (ADA) has climbed to the 8th position in the global cryptocurrency market rating. The coin hit $0.194, the highest level since July 2020, on November 24, before the correction started. 

More Cardano News

SushiSwap Price Analysis: SUSHI rebounds strongly as whales buy the dip

The entire cryptocurrency market suffered a massive crash on Thursday. Sushiswap price dropped by more than 20% within hours but managed to recover almost instantly, hitting $1.285.

More SushiSwap News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC makes new yearly highs while its network activity looks worrisome

Bitcoin has lived through the best week since February 2018. The pioneer digital currency price gained over $2,000 in less than seven days. The bullish momentum allowed it to reach a new multi-year high of nearly $18,800, marking November 2020 one of the strongest bullish months ever. 

Read the weekly forecast

BTC

ETH

XRP