Bitcoin Cash (BCH) Attempts a Recovery Above $200
The Bitcoin Cash price is holding the critical $180 support level against the US Dollar. However, there's no supporting factor for the recent price surge.
Bitcoin Cash (BCH) has been facing substantial bearish pressure, losing its grip on the crucial $190 support level over the weekend. Meanwhile, Bitcoin (BTC) is also teetering on the edge, threatening to breach the range-low of $25.8k as the market anticipates the Federal Reserve's decision on September 20.
BCH Bears and Bulls Stretching Out
For most of September, Bitcoin Cash (BCH) successfully defended the $190 support level. However, the added bearish pressure on the weekend led to a breach of this level. Buyers intervened, trying to prevent a further drop below $180.
The BCH bulls are currently striving to reclaim the $190 support, but they face the risk of turning this level into resistance. Such a shift could encourage sellers to exert downward pressure on BCH, particularly if BTC fails to regain the $26k level in the short term.
Source: TradingView
Bitcoin Cash (BCH) Potential Trading Opportunities
Traders looking to capitalize on this situation might consider shorting BCH at $190 with a take-profit target at $180, which could yield modest gains. Aggressive sellers may place take-profit orders at $176. Additionally, a secondary shorting opportunity could emerge if BCH descends to $165.
However, it's essential to stay vigilant as a short-term candlestick session closing above $193 would invalidate the short setup, potentially paving the way for bullish momentum and a focus on overcoming the $200 resistance.
Bitcoin Cash Onchain Analysis
At present, the Relative Strength Index (RSI) is in the lower range, indicating elevated selling pressure. Similarly, the Chaikin Money Flow (CMF) remains below the zero threshold, signifying weak and stagnant capital inflows in the BCH market.
The Cumulative Volume Delta (CVD) Spot, as per Coinalyze, has been declining since September 8, indicating an increase in sellers' market leverage.
Source: TradingView
Meanwhile, Open Interest rates have fluctuated between $180 million and $200 million in September, reflecting wavering demand for BCH. This neutrality suggests a need to closely monitor BTC's price movements before making any significant moves.
Despite facing a steady decline in recent days, Bitcoin Cash (BCH) managed to find support near the critical $180 level. The price is now striving for a fresh upward move, potentially reversing the bearish trend.
Bitcoin Cash is currently trading at $196.43, up 6.90% in the last 24 hours, with a $4 billion market value. It has a circulating supply volume of 21,000,000 BCH coins and a maximum supply volume of 21,000,000, with a 24-hour trading volume of $553M.
Source: CoinStats
Potential for a Downside
Failure to clear the $205 resistance may lead to a fresh decline. Initial support is around $185, and if BCH can't hold above this level, it may test the $180 support.
The crucial support is at $180, where bullish investors are likely to step in. A breakdown below $180 might open the door to testing the $168 support, with further losses potentially driving the price towards the $150 zone in the near term.
Conclusion
In conclusion, Bitcoin Cash (BCH) is currently navigating a crucial juncture, with both bullish and bearish scenarios in play, while Bitcoin's movements continue to influence the broader cryptocurrency market. Traders and investors should monitor these developments closely for potential trading opportunities.
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