Investors must avoid these levels to minimize losses
Investors keeping an eye on Bitcoin Cash and looking to avoid losses should steer clear of these crucial price points.
As of this writing, Bitcoin is still showing a little bit of bullishness, despite losing a few digits from its price. BTC retreated below the $20K mark, and is now trading at $19,998, according to data from Coingecko.
Short-term support for the bears came from rejection weeks at the $20.5k level. Even Bitcoin Cash, the fork of BTC, is not immune to this problem.
BCH is in such a jam, despite Bitcoin losing the $20,000 psychological support.
There have been recent reports of a number of developments with potentially profound implications for BCH. This report indicates that Bitcoin Cash’s transaction volume has been below the average of 27,734 daily transactions.
Lower transaction volumes are a negative indicator for both potential and existing investors for BCH, so this could be a problem.
Bitcoin Cash: Formidable Wall For The Bulls
Bitcoin Cash’s value fell 35.50% between the July 29 rally and September 19 trough, before rebounding 17.40%. After that time, however, Bitcoin Cash’s price remains stable.
These days you can buy Bitcoin Cash for as little as $96,559 and as much as $166,025. Furthermore, BCH has a support level of $112,246 and a resistance level of $125,912.
Although CCI and Stoch RSI readings are bullish, the stated resistance level remains a formidable hurdle for BCH bulls to overcome.
Although the Chaikin cash flow index is optimistic, it establishes a downward trajectory, indicating that sales velocity is increasing.
The CMF index’s gloomy forecast, on the other hand, is more pronounced on the 4-hour time interval.
The 4-hour CMF is -0.05, indicating that sellers are gaining control of the BCH market. For now, the question is whether BCH can still recover.
Possible refund? Or further decline?
The BCH support line remains unchanged. However, there are two levels of resistance that investors and traders should target: $125,912 and $138,835.
Source: TradingView
The previous level was breached twice on August 23 and September 9, but the bulls failed to sustain the breach, resulting in a price decline to $112,246.
A break of the $125,912 resistance can be interpreted as a psychological buy signal for investors. Since the fall of September 13, a modest uptrend is building on the 4-hour period.
A strong close in today’s trade could help the bulls maintain momentum and eventually surpass the indicated resistance levels.
BCH market cap at $2.28 billion | Featured image from CriptoFacil, Chart: TradingView.com
