- The parabolic SAR has reversed from bullish to bearish in the 4-hour chart.
- The IOMAP shows that the price is currently sitting on top of a healthy support wall.
The BCH 4-hour chart flashed a sell sign in the TD sequential indicator. After flashing the signal, the price has been trending horizontally over the next six sessions.
BCH needs to break below the upward trending line and the SMA 200 ($224.25) to validate that sell signal and strengthen the downtrend. The parabolic SAR and MACD are both bearish, which shows that the price should ideally break below this period of consolidation. However, why is the price consolidating in the first place instead of going down? For that, we need to look at the IOMAP.
BCH IOMAP
IntoTheBlock’s “In/Out of the Money Around Price” model (IOMAP) shows us that BTC is presently sitting on top of a strong support wall at $223. At this level, around 106,810 addresses had previously purchased 816,280 BCH. As per the IOMAP, this support wall absorbs a lot of the selling pressure, which is preventing the downward trend, for now. However, if the sellers do break below this level, they may have enough momentum to take the price below $200.
On the upside, we have a moderate-to-strong resistance level, $233. In this level, 96,400 addresses had bought 594,000 BCH.
BCH 12-hour chart
The 12-hour chart helps us gain a better understanding of the potential price action. The latest candlestick has also flashed a sell signal in the TD sequential indicator. To solidify this downtrend, the price must break below the SMA 50 ($224) to have a bearish breakout from the flag formation. Following this, the price will probably drop down to the $214.45 support level. The relative strength index (RSI) is trending around the neutral zone, which shows that the sellers have plenty of room to move before the asset becomes undervalued.
BCH Key levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.