Bitcoin (BTC) price rose to $30,000 with the news of the ETF that will be denied later and then experienced a clear pullback. Bitcoin Cash (BCH) also experienced a drop after rising to $249.7 in the same way. As of the time of writing, BCH seems to be facing a drop to around $220 according to the graph analysis.
The price uncertainty in the BCH price chart was seen at levels of $216 and $225 (white). This price level intersected with the 50-EMA (Exponential Moving Average) and the previous breakout area above $220.
At the time of writing, the price movement reached a consolidation area indicated in the graph below. The pullback could slow down in this area and allow bulls to re-enter the market, especially if BTC does not drop further.
Such a move could raise the price expectations for BCH to $237. It could also target the resistance area between $241 and $256 (red) which has been present since August.
On the contrary, a price pullback could force investors who want to buy the altcoin to wait for the next support level and consider the 12-hour OB (Order Book) below $210 (light blue).
Meanwhile, the two important indicators, RSI and CMF, experienced sharp declines at the time of writing. This reflected a decrease in buying pressure and capital inflows in the middle of a visible turnaround in the last few hours.
The Future and Expectations of BCH
As seen in Hyblock’s 12-hour Liquidation Heatmap, key magnet areas (orange) were around $235 and $225. The area indicated by the orange levels represents high liquidation zones and these zones can act as support or resistance areas.
The convergence of liquidity with $225 in the charts can be interpreted as a sign of a high probability of reversal in the region. The next upward target based on estimated liquidation could be achieved at $235. In addition, price movements that may occur in BTC can play a key role in confirming BCH’s upward trend in the near term.
