Bitcoin Cash (BCH) has seen massive downtrends since 2021 mid-November. The market structure exhibited bearishness amid relentless selling pressure. Also, Bitcoin remained shaky on the charts amid multiple crucial overhead resistances. Therefore, BCH appeared prepared to climb towards $315, hunting or liquidity, before a massive reversal.
Bitcoin Cash has its previous lower pick at $315, beyond which there is the long-term vital level of $326. Meanwhile, the last two months had buyers exhausted after hitting $340. That way, it seems the $300 to $315 range would present a lucrative selling opportunity and not the level or long positions.
Bitcoin Cash has secured a support floor of around $275 after dipping towards the $260 and $270 level to hunt for demand. Da daily decisive close under $275 would mean the alt primed for downward movements.
However, the alt has a higher probability of revisiting its previous level of interest to search liquidity before the upcoming trend. While publishing this content, $315 was BCH’s target before the directional bias. A move beyond this mark might fool some market players about impending gains, attracting buy orders execution. The token could then see a massive reverse. That may see late buyer selling, fueling the downside movement.
Reasoning
The daily chart Relative Strength Index stayed inside the oversold region for the past week. The indicators had attempted to bounce within 27 – 28 zone in the past. However, RSI knocked this zone from below at this publication. That confirmed massive bearish situations over the last few days, and the indicator might witness a relief rally from the oversold area.
The Awesome Oscillator remained beneath the zero line. That highlighted colossal downside strength within the last few weeks. Nevertheless, it presented green bars the past week, showing the bearish pressure slowed down. The on-balance volume exhibited downtrends without substantial buying volume.
Final Thought
Market players need to watch the $315 to $325 value range. Though the token might have what it takes to climb and flip $325 into footing in the upcoming weeks, the most likely scenario is a move to the previous lower peaks, triggering downward movement by Bitcoin Cash.