Bitcoin Cash Consolidates Gains Above $210 – Should You Go Long It? – AMBCrypto News

Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.

• BCH fell near the $220 mark but has consolidated above $210 since September 15.
• Open interest rates have improved; The $210 level was a key liquidity level

The crypto market registered an impressive recovery in the third week of September. Bitcoin [BTC] led the pack after reclaiming the $26,000 level. However, one of the best performances was Bitcoin Cash [BCH] Gain of +20% after going from $180.5 to >$220.

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Today, as the rally peters out at $220, BCH bulls defended the $210 level, pushing the altcoin into a short-term formation on a 4-hour time frame since September 15.

Will the range expand for the bulls to exploit?

Chaikin Money Flow (CMFI) has fallen below zero since September 15, indicating that capital inflows have been dismal and stagnant over the past two days.

Likewise, the Relative Strength Index (RSI) retreated from the overbought zone but rebounded from the 50 mark. This demonstrated that the buying pressure eased but took a slight momentum at the time of writing this article.

On the 4-hour chart, the price has been fluctuating between $220 and $210 over the past two days. As the FOMC meeting scheduled for September 20 approaches, a range extension is likely in the coming hours before a spike in market volatility.

If so, BCH could target the high end of the range near $220.7, providing bulls with additional gains of 3.96% from the lowest and near-term support at $210.7.

A prolonged decline below $210 may ease at the H12 bullish order block (OB) of $198 to $203 (cyan). However, such an approach would invalidate the long implementation process.

Improved open interest rates

Source: Coinglass

According to Coinglass, BCH open interest stagnated below $230 million in early September, but saw a slight rise above $250 million from September 13. This is a sign of bullish bias as demand for the token has increased in the derivatives market.

How many are 1,10,100 BCH worth today?

The weekly liquidation chart of the BCH/USDT pair on Binance (futures market) showed that the $210 level had a cumulative long liquidation leverage of >$900,000. This was the liquidity zone closest to the price action at the time of publication.

The conclusion from the above is that BCH could see a strong price reaction at this level, making it crucial support in the short term.

Source: Coinglass