- Bitcoin Cash (BCH) sustains a promising position above $210, spurred by heightened buying activity, edging closer to the key $220 price threshold.
- A recent spike in BCH value led to a $650k loss for sellers, hinting at an advantageous market posture for buyers.
The crypto landscape is often turbulent, yet some cryptocurrencies manifest a resistance to this volatility. Bitcoin Cash (BCH) is one such contender, managing to cement its standing above $210, despite market fluctuations. The path to $220, albeit challenging, now seems within reach thanks to an increase in buying pressure. This particular scenario unfurled a harsh reality for sellers, who witnessed a considerable loss of $650k.
Overcoming the $220 Impediment
The journey of BCH from the $186 support level, reaching and maintaining a stance above $210, showcases the potential for further bullish tendencies. The $220 to $230 price zone, however, looms as a substantial hurdle. Despite being repelled twice at this level, on August 29 and September 15, the current market dynamics offer a glimpse of hope for BCH enthusiasts.
At the crux of this optimism are on-chart indicators. The Relative Strength Index (RSI), traversing above the neutral 50 mark to 58 at the time of writing, signals a prevailing buying vigor. Concurrently, the Chaikin Money Flow (CMF) index at +0.05 underscores an uptick in capital inflows, painting a favorable scenario for buyers.
Should BCH manage to vault over the $220 barrier, the roadmap towards $240 to $250 appears relatively unencumbered. However, a slump below $200 could jeopardize this bullish narrative, potentially thrusting BCH back towards the $186 support echelon.
A Misstep for Shorts
The bullish inclination of BCH has not boded well for short sellers in the derivatives market. Data extracted from Coinglass unveils a whopping $650k loss for shorts over the past 24 hours, accounting for 95.11% of total liquidations within this timeframe. This staggering liquidation highlights a significant market tilt in favor of buyers, as illustrated by the dominant 51% share commandeered by longs on the exchange’s long/short ratio.
The unfolding narrative for BCH speaks volumes about the intricacies of crypto market movements, where a blend of on-chart indicators and market sentiment plays a pivotal role in determining the trajectory of digital assets like Bitcoin Cash.