Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BCH cracked the short-term support of $190 at press time.
- Sellers gained more market control after the cracking $190 level.
Bitcoin Cash [BCH] sustained more bearish pressure over the weekend (9-10 September) and lost hold of the $190 support at press time. In the meantime, Bitcoin [BTC] threatened to crack the range-low of $25.8k at publication time ahead of the Fed decision on 20 September.
Will the bulls sustain the pressure?
Since 1 September, BCH has defended the $190 until the weekend (10 September). The extra bearish pressure tipped sellers to crack the $190, and buyers attempted to prevent further drop below $180, as shown by the extended low candlestick wick.
But the BCH bulls failed to reclaim the $190 support at press time and could flip the level to resistance. Such a move could encourage sellers to lower BCH prices, especially if BTC fails to reclaim $26k in the short term.
If so, shorting the altcoin at $190 with a take-profit at $180 could present modest gains. Aggressive sellers could place take-profits at $176. A secondary shorting opportunity could also be feasible if BCH drops to $165.
However, a 4-hour chart candlestick session close above $193 will invalidate the short set-up. Such an upswing could set bulls to focus on the $200 roadblock.
Meanwhile, the RSI retreated in the lower range, reinforcing elevated selling pressure at press time. Similarly, the CMF labored below the zero threshold, reiterating weak and stagnated capital inflows into the BCH market.
Sellers gained more leverage
According to Coinalyze, the CVD (Cumulative Volume Delta) Spot edged lower from 8 September, marking sellers’ increasing market leverage. Sellers were still firmly in control at press time.
Meanwhile, the Open Interest rates fluctuated between $180 million and $200 million in September. It demonstrates the demand for BCH wavered in September. It also underscores an overall neutral sentiment and calls for tracking of BTC price movement before making moves.
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