BCH in a Bear Hugs — Expected to Fall to $370 — Technical Analysis
article from the news Blockchain portal https://blockchainworld.media
At the time of writing, BCH is trading at 397.72 BCH/USDT. 29th January saw it touching highs of 431 BCH/USDT. The currency has fallen 7.11% since yesterday. The bulls have been trying to take over the currency since 28th January with the price moving beyond the support levels of $365.
There was a resistance at the 20-day SMA of resistance to cross $450 levels. A balance was visible between demand and supply between $368 and $360 support levels and RSI was seen below the mid-point indicating flattening out of the demand and supply.
As per the 20-day SMA if the price crosses $400 levels, then it can go up to $510 and extend its increase. However, this has not happened and the price on 30th January 2021 has been dragged down to $399 levels.
BCH Support Levels
The support levels are suggested as below –
NameS3S2S1Pivot PointsR1R2R3Classic374.2368.4389.2413.59412.34456.21431.12Fibonacci379.2398.3423.23413.59421.2427.2436.1
As you can see the current trades are near the support levels S2 and this pivot doesn’t seem possible for too long.
News to Watch Out
Bit.com and Matrixport had announced on 21st January 2021 that BCH perpetual swaps and options would be launched. Exchanges wish to create a hedging capacity against Bitcoin by BCH derivatives.
Price Predictions Ahead
Although, a general 1–2 day view of BCH is a strong SELL. The open interest in purchases is higher than the fall in prices. The price resistance was rejected at $410 levels indicating a further slide. The mid-point of the falling is expected to the support.
https://www.tradingview.com/x/ugKIP3YH
BCH has been trading with a declining channel and the market’s direction has slowly forced the prices lower. It will be forced to test the lower support levels of $379 and the OBV has been seen lowering prices in the descending channels. This shows a sell-off in the offing. Failing these support levels you can expect BCH to fall below $371 levels.
