Bitcoin Cash [BCH] recovery is underway, here are the key levels to track

Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is solely the opinion of the author

• BCH moved up along its rising line, at the time of writing.
• The financing rate was negative, but quarterly holders outperformed monthly HODLers.

Bitcoin Cash [BCH] pulled back from $140 in mid-March and reached $116.5 in late March. After that, BCH’s price action has consistently stayed above a rising line as bulls aim to recover losses in recent days. But there are important obstacles and levels to watch out for.

Read Bitcoin Cash [BCH] Price prediction 2023-24

At press time, Bitcoin [BTC] had fallen a little below $28K, but seemed determined to regain the price level. A move back to $28K and a rise thereafter could push BCH to clear immediate obstacles on the way up.

Can bulls clear the $127.5 and $130 hurdles?

Source: BCH/USDT on TradingView

At the end of March, the RSI (Relative Strength Index) retreated from the oversold zone, but was almost neutral at press time. It shows that buying pressure increased but later subsided due to BTC’s retracement from $28K.

On the other hand, OBV (On Balance Volume) fell but showed an uptick – pointing to a likely increase in trading volume if BTC retakes $28K.

As such, BCH can clear the hurdles at the 200 MA (Moving Average) of $125 and $127.5 if BTC recovers $28K. A close above $127.5 could tip bulls to retest $130 or increase beyond that, especially if BTC moves to $29K.

A close below the rising trendline can attract increased selling pressure and turn the structure bearish. That could see BCH fall to retest the $116 support level.

The 30-day MVRV was negative, in contrast to the 90-day MVRV

Source: Sentiment

According to Santiment, the funding rate remained worryingly negative in recent days and could undermine a strong recovery.

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At the performance level, quarterly owners outperformed monthly owners, as shown by the positive 90-day Market Value to Realized Value (MVRV) at press time. The 30-day MVRV was negative at the time of writing, indicating that monthly owners were in losses as of press time.

Source: Santiment (monthly vs. quarterly holder performance)

In conclusion, BCH could rise if BTC retakes $28K, given its strong positive correlation to the king coin. Therefore, investors should track BTC price action for more profitable trade setup.