Bitcoin Cash Faces Pressure as it Falls Below $190, Sellers Gain Leverage

• Bitcoin Cash (BCH) falls below $190, facing potential further downward pressure.
• Sellers gain leverage as the market grapples with bearish sentiment.
• Caution urged for traders as BCH struggles to reclaim critical support levels.

Bitcoin Cash (BCH) experienced a weekend of bearish pressure, leading to a loss of the critical $190 support level. Concurrently, Bitcoin (BTC) hovered near its range-low of $26,000. This hints at potential volatility ahead of the Federal Reserve’s decision scheduled for September 20.

Read CRYPTONEWSLAND on google news

BCH had successfully defended the $190 mark since September 1, but the situation changed over the weekend, particularly on September 10. The increased bearish pressure pushed BCH below $190, and buyers made efforts to prevent further decline, as indicated by the extended lower candlestick wick.

As of now, BCH bulls have been unsuccessful in reclaiming the $190 support, and there is a risk that this level could flip to become resistance. This development might encourage sellers to push BCH prices lower, especially if BTC also fails to recover above $26,000 in the short term.

In the event of a further decline, traders may consider shorting BCH at $190 with a take-profit target around $180, potentially yielding modest gains. More aggressive sellers might set take-profit levels at $176. A secondary shorting opportunity could emerge if BCH drops to $165.

However, it’s essential to be cautious, as a 4-hour chart candlestick session closing above $193 would invalidate the shorting scenario and could lead to renewed bullish momentum targeting the $200 level.

Indicators of Market Sentiment

The Relative Strength Index (RSI) has retreated into the lower range, indicating heightened selling pressure at the moment. Additionally, the Chaikin Money Flow (CMF) remains below the zero threshold, reflecting weak and stagnant capital inflows into the BCH market.

Coinalyze data reveals that the Cumulative Volume Delta (CVD) Spot has been trending lower since September 8, signaling an increasing market leverage for sellers. This suggests that sellers currently have a firm grip on the BCH market.

Throughout September, Open Interest rates for BCH have fluctuated between $180 million and $200 million. This fluctuation demonstrates wavering demand for BCH this month. It also underscores an overall neutral sentiment, highlighting the importance of closely monitoring BTC’s price movements, as they are likely to influence BCH’s trajectory in the near term.

In summary, BCH faces a pivotal moment as it dips below the $190 support level. Traders are advised to exercise caution and consider multiple scenarios as they navigate this period of heightened market volatility.

Read Also

• Bitcoin ETF Anticipation Causes Bitcoin Cash (BCH) Surge
• Bitcoin Cash (BCH) Price Prediction 2023 to 2031: Will BCH Price Hit $200 Soon?
• TRON Bulls at Risk of Extended Pullback as Price Ceiling Proves Too High
• Traders are Selling Ethereum Most Aggressively Since May ’22
• Bitcoin Cash Price (BCH) Soars on Rising Social Interest and Exchange Backing