Bitcoin Cash – Why buying BCH before a $624 breakout is risky
Journalist
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Bitcoin Money [BCH] has been buying and selling inside a variety since July 2024. This vary prolonged from $272 to $624. Because the fifteenth of November, Bitcoin Money has rallied by $22.2%, whereas Bitcoin [BTC] fell by 7.4% throughout the identical interval.
Regardless of the good points over the previous seven weeks, Bitcoin Money bulls couldn’t make a decisive breakout from the vary but.
Supply: BCH/USDT on TradingView
The excellent news for long-term traders was the rising purchase quantity regardless of the range-bound worth motion. Since November 2024, Bitcoin Money has been unable to interrupt the $624 long-term resistance, however the OBV has made greater lows since then.
This indicated that consumers have been stronger, on common, over a protracted time frame. This meant {that a} vary breakout was solely a matter of time.
Do you have to purchase BCH now?
Usually, it’s not a terrific concept to purchase on the vary highs. Sure, a breakout is feasible. A Bitcoin transfer above $94.5k, the native resistance, may shift the market sentiment bullishly, for instance.
On the time of writing, the proof at hand doesn’t assist such an consequence within the coming days and even weeks. Till we get a breakout above $624 and a retest as assist, traders needn’t purchase BCH above $600.
Is it time to go brief?
Coinalyze information confirmed that the spot CVD has been in decline over the previous three days, exhibiting spot promoting exercise. The Open Curiosity was down virtually 20% following the rejection of the vary highs, an indication of waning speculative confidence.
Supply: BCH/USDT on TradingView
The 1-hour chart confirmed one other short-term vary (yellow) from $575 to $597. The psychological $600 would doubtless be a great alternative to go brief for decrease timeframe merchants.
The presence of the imbalances on the hourly timeframe from $540 to $580 (white and pink packing containers) represented demand zones that would see a worth bounce. Therefore, short-sellers ought to anticipate BCH to tarry in these areas earlier than falling decrease.
A transfer above $605 would invalidate the short-term bearish concept.
Closing Ideas
- Although Bitcoin Money noticed respectable good points since mid-November, it was not a good suggestion to purchase the altcoin close to its long-term vary highs.
- The short-term vary beneath the $600 stage may supply worthwhile commerce setups, however it’s not a swing commerce, and would possibly solely be held for a day or two at most.
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
