Here Are The Key Levels For BCH Investors To Keep An Eye On
Bitcoin (BTC) spent a few hours above the $20,000 mark. Due to the selling pressure it faced near $20,500, bulls might have been able to count on one hand the number of hours it spent above $20,000. Once again, the $19.6k-$19.8k range is a key level for the bulls to defend. Bitcoin Cash (BCH) has also gone up in the past few days.
What’s up with range, triangle, and key level?
Source: AMB Crypto
On the chart, there were two possible events that could happen over the next week. A descending triangle, which was highlighted in yellow, was seen. BCH went up to $164 in the middle of July, but it was stopped there. Since then, the price has made a series of lower highs. If the daily session ends below $108.4, it’s likely that BCH will go down again. On the other hand, if the session ends above $124.8, it could set bullish targets for BCH.
On the other hand, an orange range was seen, and BCH traded within it over the past six weeks. At $123.1, this range was in the middle. Bulls of BCH have been facing a lot of trouble at this level for almost a month.
In the past four months, the $112 level was also a key support level, and a retest of this level would likely be a good time to buy. But there was also a good chance that BCH would go above $123 if Bitcoin went up in the next few days.
A long position can be taken if the price doesn’t go past $123 and then goes back to test the lows of the range. Again, the goal would be $123, and the stop-loss level would be $105.4. The range formation made sense with this idea. But a break above $123 could show that the triangle pattern was broken in a bullish way. If that happens, bulls can try to buy when the price comes back to the same level. The goals for making a profit would be $134, $145, and $155.
MVRV has been getting better since July, but has it hit rock bottom?
Source: Santiment
Santiment says that the ratio of Market Value to Realized Value (MVRV) has been getting better since July. Even though BCH has spent most of the time since July trading around $110, the MVRV metric became less bearish. The fact that the MVRV reached the same level it had reached in January 2019 was even more interesting. But the lows in December 2018 were a long way from the lows in July 2022.
Since September, Binance’s funding rate has been negative, but it has also started to move closer to 0%. During this time, the price has also been in a range. Together, it showed that bears on the futures markets were no longer in the vast majority.
If the price goes below $105, the range idea and the bullish breakout from the triangle could be wrong. Instead, it could mean that BCH is going to drop to $95 or even lower.
