Bitcoin Cash Price Analysis: BCH sits on top of strong support barrier

The MACD in the daily chart for BCH shows sustained bullish momentum.
The 3-day BCH chart has flashed a sell signal in the TD sequential with a green nine candlestick.

Bitcoin Cash rose from $240 and rose to $276 between October 21 and October 24. After that, the price dropped to ~$260, found support at the 100-day SMA and has gone up to $266.50, as of writing. Currently, BCH has two resistance walls upfront at $268 and $276. The MACD shows sustained bullish momentum.

BCH/USD daily chart

The daily confluence detector helps us visualize strong resistance and support levels. As per the tool, $268 and $276 has moderate resistance. If the buyers somehow manage to break past these barriers, they should reach $300.

BCH daily confluence detector

Another positive sign is the fact that the whales have been busy strengthening their positions. The number of addresses holding 10,000 - 100,000 tokens has gone up from 164 to 170 between October 25 and October 27. This is an extremely positive sign for the overall ecosystem.

BCH holders distribution

The Flipside: Can the bears take over?

While the overall outlook looks good for the bulls, there may be a short-term bearish correction around the corner. The 3-day chart for the Bitcoin fork has flashed the TD sequential indicator's sell signal via the green nine candlestick. This could see a price downturn to the 50-bar SMA ($250).

BCH/USD 3-day chart

Key price levels to watch

For the buyers, the $276 resistance line is crucial. Breaking past this level should give them a free path to $300.

The sellers will look to capitalize on the sell signal in the 3-day chart and drop the price to the 50-bar SMA ($250).

Share: Cryptos feed

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.