Bitcoin Cash BCH/USD maintains choppy movement. Are buyers relentless?
Bitcoin Cash has held close to $110 for three months now
The cryptocurrency’s price movement has reflected that of Bitcoin
BCH has formed multiple bottoms, suggesting a possible price reversal at $110
Bitcoin Cash BCH/USD bulls have been sending a clear message. That they want to keep the $110 level intact. Even when the markets are under pressure, BCH has always held to the level since June.
Well, the price dynamics of Bitcoin Cash resemble those of the parent blockchain, Bitcoin. The latter has been the king of crypto. Thus, it is expected that Bitcoin will steal all the headlines in very bullish markets. However, investors look at Bitcoin Cash as a cheaper alternative to Bitcoin. It’s not the cheapest cryptocurrency, nonetheless, as it trades at a relatively premium $122 price. Still, the price is a penny compared to the beaten-down price of $20,200 for Bitcoin.
Turning to the price action, Bitcoin buyers have always defended $19,000. Clear multiple bottoms at the level suggest it could be the most plausible psychological bottom for the cryptocurrency. BCH has moved similarly, which we think would welcome a bullish recovery.
BCH forms multiple bottoms at $110. What does it mean?
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Source – TradingView
From the technical outlook, BCH has formed multiple bottoms at the $110 level. Multiple bottoms are not trend or price direction indicators by themselves. Instead, they show a fight for control between sellers and buyers.
Multiple bottoms that occur after a prolonged downturn could be a significant suggestion of a trend change. In other words, it signifies that buyers are beginning to get in, which erodes the selling pressure.
What next for BCH
The above chart shows buyers trying to control BCH at the $110 level. To a patient investor, that would be a perfect entry point before momentum kicks in.