Bitcoin Cash Price Forecast: BCH’s path to $300 cleared up – Confluence Detector

  • BCH bulls face weak resistance in the path back to the $300 zone.
  • The daily price chart is currently trending in an ascending channel formation.

After the price found support around $207, Bitcoin Cash has been trending upwards in an ascending channel formation. During this upward trend, the Bitcoin fork managed to cross the 50-day SMA ($238), 200-day SMA ($247.35) and 100-day SMA ($257.15). The MACD shows sustained bullish momentum, which should give the buyers enough firepower to shoot for the $300 zone.  

BCH/USD daily chart

BCHUSD daily chart

As per the daily confluence detector, BCH faces a moderate resistance barrier at $277, which had managed to previously thwarted the price. Strong support walls well protect the downside at $262 and the three SMAs. The confluence detector shows that this $262 wall is robust enough to absorb a significant amount of selling pressure.

BCH daily confluence detector

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The way the whales have been behaving has also been extremely positive. As per Santiment’s holder distribution chart, the number of addresses holding 100-1,000 tokens rose from 12,462 on October 27 to 12,494 on October 29. The number of addresses holding 1,000-10,000 tokens rose from 1,711 on October 27 to 1,724 on October 28, before dipping to 1,723 at the time of writing. Finally, the number of addresses holding 10,000-100,000 tokens rose from 164 on October 25 to 172.  

Bitcoin Cash holders distribution

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The Flipside: Can the bears take back control

As we have mentioned before, the 3-day chart for BCH has flashed a sell signal with a green-nine candlestick in the TD sequential indicator. The bears now have around 22 hours left to validate the signal. The downside for Bitcoin Cash in the 3-day chart lies at the 100-bar SMA ($268) and 50-bar SMA ($250).

BCH/USD 3-day chart

BCHUSD 3-day chart

Key price levels to watch

BCH bulls will need to flip the $277 resistance barrier into support to make their way into the $300 zone.

On the other hand, the bears have to validate the sell signal in the 3-day chart and aim to take the price below the 100-bar SMA ($268) and 50-bar SMA ($250).

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