Bitcoin Cash consolidates gains above $210 – Should you long it? 

Posted: September 18, 2023

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion

• BCH faltered close to the $220-mark however has consolidated above $210 since 15 September
• Open Rates of interest improved; $210-level was a key liquidity degree

The crypto-market registered a formidable restoration within the third week of September. Bitcoin [BTC] led the pack after reclaiming the $26k-level. Nevertheless, probably the greatest performances was Bitcoin Cash’s [BCH] +20% acquire after leaping from $180.5 to >$220. 

Is your portfolio inexperienced? Take a look at the BCH Profit Calculator 

Now, whereas the restoration faltered at $220, BCH bulls defended the $210-level, pushing the altcoin right into a short-range formation on the 4-hour timeframe since 15 September. 

Will the vary prolong for bulls to use?

Supply: BCH/USDT on TradingView

The Chaikin Cash Stream (CMFI) has wavered under zero since 15 September, indicating capital inflows have been dismal and stagnant over the past two days.

Equally, the Relative Energy Index (RSI) retreated from the overbought zone however bounced from the 50-mark. It demonstrated that purchasing strain eased however picked up slight momentum, on the time of writing. 

On the 4-hour chart, the value has been oscillating between $220 and $210 up to now two days. With the FOMC Assembly scheduled for 20 September inching nearer, a spread extension was seemingly within the subsequent few hours earlier than a spike in market volatility. 

If that’s the case, BCH may goal the range-high close to $220.7, providing bulls further 3.96% beneficial properties from the range-low and short-term help of $210.7. 

An prolonged drop under $210 may ease on the H12 bullish order block (OB) of $198 – $203 (cyan). Nevertheless, such a transfer will invalidate the lengthy set-up. 

Enchancment in Open Rates of interest

Supply: Coinglass

In line with Coinglass, BCH’s Open Rates of interest stagnated under $230 million in early September however registered an uptick above $250 million from 13 September. It’s a signal of bullish bias as demand for the token elevated within the by-product market. 

How a lot are 1,10,100 BCHs worth today? 

The weekly liquidation map for the BCH/USDT pair on Binance (Futures market) confirmed that the $210-level had a Cumulative Lengthy Liquidation Leverage of >$900k. This was the closest liquidity space to cost motion at press time.

The inference from the aforementioned is that BCH may see robust value response on the degree, cementing it as an important short-term help. 

Supply: Coinglass