Bitcoin Cash is an altcoin version of the market leader, Bitcoin. It is the result of a hard fork in the blockchain technology. The special thing about Bitcoin Cash is that it can process as many as 200 transactions per second, while bitcoin can only process 3-7 transactions per second. Additionally, the transaction cost of Bitcoin Cash is less than a penny.
Currently, BCH price is stuck in a consolidation zone ranging between $101.5 and $105.5 since June 10th. The uptrend in the BCH price began during the start of 2023 when it started to rise from the low of $95.5. This move led to the creation of an annual high at $154.4 and an uptick of approximately 61%. The price then fell to the $110 level and formed a support level for retesting but the move was halted at $135.
Possibilities For BCH Price
Recently, BCH price has broken the support level of $110 and has formed the new support level at $101.5. If bulls can push the price above the resistance level of $105.5, there is a possibility for the price to head toward the next resistance level of $116. The market requires bulls to push prices above $135 to regain the interest of buyers and to target the yearly highs.
On the other hand, if bears take control and push price below the recent support, then it might fill the lower wick of the June 10th candlestick. This move would lead to a break of yearly lows and to BCH losing all of its gains of 2023.
Will BCH Price Recover From Losses?
BCH price is trading below 20,50,100, and 200-Day EMAs, indicating bearish momentum in the price. RSI trades at 41.44, suggesting increased participation of sellers in the market. The bearish momentum has not been able to push price in the oversold zone. For the price to regain bullish momentum, it needs to rise above the major EMAs.
The Chaikin money flow score is 0.08, indicating strength in the market. Since the middle of May, CMF has not crossed below 0 even though Bitcoin Cash price has been falling, suggesting that there is an active participation of buyers in the market. BCH price has reached the lower band of bollinger and started to consolidate.
The cryptocurrency price might breakout in the upward direction to head toward the upper band of bollinger. The long/short ratio is 1.09 with 52.16% longs and 47.84% shorts, suggesting higher participation of bulls in the last 24 hours in the BCH market.
Conclusion
The overall market structure and price action of Bitcoin Cash is still bearish and the price has entered into a consolidation phase. Traders should wait for a candle to break and close either above the resistance level or below the support level.
Technical Levels
Major support: $101.5 and $96.5
Major resistance: $116 and $135
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/16/bitcoin-cash-price-prediction-bch-price-trades-above-100-level-2/