Bitcoin Cash BCH/USD maintains choppy movements. Are buyers ruthless?
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Bitcoin Cash has been holding close to $110 for three months now
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The cryptocurrency’s price movement has mirrored Bitcoin’s
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BCH has formed multiple bottoms, suggesting a possible price reversal at $110
Bitcoin Cash BCH/USD bulls have sent a clear message. That they want to keep the $110 level intact. Even when the markets are under pressure, BCH has always stayed at the level since June.
Well, the price dynamics of Bitcoin Cash is similar to that of the parent blockchain, Bitcoin. The latter has been the king of crypto. Thus, Bitcoin is expected to steal all the headlines in highly bullish markets. However, investors see Bitcoin Cash as a cheaper alternative to Bitcoin. It is still not the cheapest cryptocurrency, as it trades at a relatively high price of $122. Still, the price is a penny compared to the depressed price of $20,200 for Bitcoin.
In terms of price action, Bitcoin buyers have always defended $19,000. Clear multiple bottoms at the level suggest that it could be the most plausible psychological bottom for the cryptocurrency. BCH has moved similarly, which we believe will welcome a bullish rally.
BCH forms multiple bottoms at $110. What does that mean?
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Source – TradingView
From the technical outlook, BCH has formed multiple bottoms at the $110 level. Multiple bottoms are not trend or price direction indicators in themselves. Instead, they show a struggle for control between sellers and buyers.
Multiple bottoms that occur after a prolonged downtrend can be a significant indication of a trend change. In other words, it means that buyers are starting to come in, which eats away at the selling pressure.
What next for BCH
The chart above shows buyers trying to control BCH at the $110 level. For a patient investor, it will be a perfect entry point before the momentum starts.
