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Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
- Bitcoin Cash has a strong bullish conviction in the short term
- The rally from the 61.8% retracement level allowed BCH prices to skyrocket again
Bitcoin cash [BCH] has a healthy bullish outlook across multiple time frames. Both the four-hour chart and the one-day chart had a bullish structure at the time of writing. Added to this was the success the buyers recently achieved when they managed to break through a month-long resistance.
Read the one from Bitcoin Cash [BCH] Price forecast 2023-24
This resistance zone extended from $220.3 to $228 and was a bearish order block on the four-hour chart. A recent report from AMBCrypto noted that the $220 resistance zone was crucial for the bulls to win. Now that they’ve done that, what can traders keep an eye out for?
The former resistance was now turned into a support zone that the BCH bulls could defend
Source: BCH/USDT on TradingView
H4’s bearish order block, once broken, became a bullish breaker block. It was retested as support on September 27, and at the time of writing, BCH was trading at $233.7. The move past the $228.4 level turned the market structure on the daily chart bullish.
On the four-hour chart, the price was bullish when BCH climbed above the $210.2 level a few days ago. The Relative Strength Index (RSI) stood at 75, indicating intense northward momentum. The On-Balance Volume (OBV) has been in an upward trend since September 12.
The defense of the $190.4 region was crucial for bulls in the long term as it represented a Fibonacci retracement level. These Fib levels are plotted based on BCH’s late June rally from $104 to $329. Therefore, the resumption of the rally meant that new highs were possible, although Bitcoin [BTC] could also say something.
Bitcoin Cash is showing positive sentiment in the market after breaking through USD 220
Source: Coinalyse
Coinalyze data showed that market sentiment remained bullish in the short term. When BCH rose above $220, Open Interest also rose by a large amount. This showed eager bulls looking to take advantage of the breakout. It was a signal of bullish conviction.
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The spot Cumulative Volume Delate (CVD) has been in an uptrend for the past three days, showing that the breakout was driven by real demand. Overall, the prospects for Bitcoin Cash to continue rising to $250 and higher were good.