Bitcoin Cash (BCH) has been showcasing a strong bullish trend over the last ten days, with a price action that also reflects a positive outlook. The digital currency has managed to overcome a key resistance point at $250, turning it into a demand zone. This change in market dynamics may lead to the question: “BCH can push to $300, but what obstacles may the bulls face before achieving this?”
A Look at the Higher Timeframe Charts
The charts representing daily and weekly data indicate a solid bullish bias for BCH. The cryptocurrency’s journey from nearly $100 to $329 in June underwent a healthy pullback to $180 before making another upward move. The H12 bearish order block, a significant resistance point, was successfully surpassed.
Signs of Bullish Intent on the Four-Hour Chart
The four-hour chart’s price action signals bullish intent. The market structure and momentum suggest that further gains are achievable. The On-Balance Volume (OBV), a key indicator of trading volume, is also on an uptrend. The OBV experienced a significant spike in mid-October, showing the market’s strong conviction in BCH.
The cyan box at the $250 level, previously an H12 bearish order block, flipped to support on October 23. The Fibonacci levels for the recent rally point towards potential resistance points at $284, $301, and $309. These levels could challenge the bulls in their push towards $300.
Potential Short-Term Retracement
The higher timeframe liquidation heatmap for BCH indicates the next key level to watch is $300. However, a minor retracement in the short term could occur, particularly at the $275 price point, which could serve as a resistance level. The liquidation levels chart shows that short liquidations might be triggered at the $265 zone, enticing more traders to go long and thereby building liquidity.
The Cumulative Liq Levels Delta is positive but not overwhelmingly so, indicating that a move towards $265 followed by a retracement is a plausible scenario. Another possibility to consider is a dip to the $235-$245 region, which could present a buying opportunity with a target of $284 (Fib extension level) or higher. However, a drop in Bitcoin (BTC) could potentially fuel bearish sentiment in the short term.
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