Bitcoin Cash (BCH): Why a Minor Upward Move Could Present Shorting Opportunity
- BCH exhibited a bearish stance on its higher charts.
- Bulls and bears will likely watch a move beyond $110 toward the $115 value area.
The previous two days saw Bitcoin defending the value area at $15.8K – $16.2. Upside actions would meet substantial resistance at $18.2K. Meanwhile, uptrends in Bitcoin would witness increased selling momentum at $17.8K – $18.5K. Bitcoin Cash also displayed some bullish strength at lower timeframes.
Nevertheless, BCH’s daily chart reflected bearishness for the alt. bulls should push prices beyond $120 to cancel the prevailing downbeat mood. Should traders prepare to sell price bounces or surges past $120 before purchasing the alt?
FVG Might Present Shorting Opportunity
Analysts drew the FIB retracement level from the swing low of $87 to the $126 high. It placed the 0.618 and 0.786 retracements at $111.1 & $117.7, respectively. BCH bounced from the lows of $87 within no time to explore regions beyond $100 on November 10.
Meanwhile, its revival slowed, and the daily chat flashed a bearish market structure. November 8 trading session’s swift selling bough inefficiencies on the 24hr chart. The inefficiency confluence with the FIB golden pocket.
Moreover, $119.4 remained essential over the past few days. A 24hr session closing beyond this mark would flip the market structure bullish. Meanwhile, technical indicators presented seller strength. The RSI (Relative Strength Index) remained beneath neutral 50, though it highlighted a somewhat neutral bias, reading 45.
Also, the CMF (Chaikin Money Flow) surged to -0.04, translating to declined cash flow out of the marketplace within the previous few days. Thus, traders might see a price bounce from $112 to $115. A move past $119.4 would invalidate bearishness at this mark, whereas enthusiasts can set take-profits at $100 & $89.
90D MVRV Suffers Amid Latest Drop
The last few months have seen BCH prices enduring a substantial selling momentum nearly every time the 90d MVRV ratio entered the bearish region. That happened recently, on November 4. Meanwhile, the following day, Bitcoin Cash created a local high at $126 before declining swiftly.
While publishing this blog, the MVRV swayed within the negative region. Nevertheless, enthusiasts can watch for a potential move to 4% or 5%. Meantime, BCH’s November social dominance saw a brief uptick.
Stay tuned for upcoming crypto updates.
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