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Bitcoin Cash (BCH) Could Be Heading Towards 275 USD After Key Support Holds Firm.

November 5, 2020

Talking Points:

● BCH was able to bounce up from the 50-day simple moving average (SMA).

● Bulls will see firm resistance at the 100-day SMA and 200-day SMA.

BCH slide from 268.25 to 241.70 USD over three days between the 2nd of November and the 4th of November. In doing so, it fell below the 100-day SMA and 200-day SMA. However, a key support level has remained firm, which might swing the price in the bulls’ favour.

The 50-day SMA Holds Firm.

The bulls have pushed BCH up to 245 USD after it climbed up from the 50-day SMA. Looking back at the price history, the 50-day SMA has been a strong support and resistance level. Following this bullish price movement, the relative strength index (RSI) has halted its downward trend and is now pushing up from 41.60 to 43.45%.

BCH/USD daily chart

The daily confluence detector helps us see the healthy levels of support and resistance. The detector highlights that we have two strong resistance levels at the 100-day SMA (257 USD) and 200-day SMA (248 USD). If the price is able to break over these levels, the price could make a break into the 275 USD region.

The bullish theory stands up when looking at the Santiment’s holder’s distribution chart. The volume of addresses holding 1,000-10,000 tokens rose from 1,724 on the 1st of November to 1,755 at the time of publishing. Similarly, the volume of addresses holding 10,000-1 million tokens increased from 170 on the 2nd of November 2 to 171 at the time of publishing.

It should be highlighted that this theory will only hold if the 50-day SMA doesn’t falter. If the bears are able to drag BCH down, the next support level, as per the daily confluence detector will be at 222.50 USD.

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