Bitcoin Cash Price Forecast: BCH flashes buy signal – Confluence Detector
|- The confluence detector shows a lack of substantial resistance upfront.
- The whales appear to be dumping their holdings.
After crossing over the 50-day SMA ($232.75) on October 10, Bitcoin Cash managed to reach $270.75, as of writing. The MACD shows sustained bullish momentum, so we can expect the price to reach the $282.35 resistance barrier. Upon breaking past this point, the Bitcoin fork should be able to enter the $300-zone.
BCH/USD daily chart
The BCH daily confluence detector shows that the resistance at $282.35 is moderate-to-weak. As such, buyers should be able to conquer this obstacle. The detector shows a lack of strong barriers between the price and this resistance level.
BCH confluence detector
The hourly chart further corroborates this overall bullish outlook. As you can see, the price has flashed a buy signal in the TD indicator. The bulls should take advantage of this and break past the $275 barrier.
BCH/USD hourly chart
The Flipside: Can bears change this outlook
The bears can control the market by flipping the 100-day SMA ($254.50) from support to resistance. However, this will be very tough to do as the confluence detector shows that this support wall is solid. As such, BCH’s downside potential can be effectively capped off here.
Adding further credence to this bearish outlook is the behavior of the whales. As per Santiment, the number of addresses holding 1,000-10,000 tokens fell from 1,751 on October 19 to 1,726 on October 23. Plus, the number of addresses holding 10,000-100,000 tokens fell from 168 on October 20 to 165 on October 23. This is a bearish sign as it shows that the whales are presently dumping their holdings.
BCH holders distribution
Key price levels to watch
The bulls must break past the $282.35 resistance barrier to reach the $300-zone.
On the other hand, the bears can take control by flipping the 50-day SMA ($232.75) from support to resistance.
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