$BCH Will BitcoinCash bulls sink or swim at $200?
As covered earlier, the downward momentum picked up in May. The MFI raced from 49.8 in the second week of May to 14.64 by the third week of June. Similarly, the CMF also slid below -0.05 to indicate incessant selling underway.
In August 2023, the swing low at $165.4 had been the one that propelled the Bitcoin Cash uptrend up to $719. Therefore, this swing low is the one that must be breached to flip the weekly swing structure bearishly.
It appeared likely that this bearish scenario would soon unfold.
🔹Lower timeframe
#BCH price action shows bullish signs
The 4-hour chart had a bullish swing structure. The CMF was at +0.12, showing buying pressure was dominant. Yet, the token was in a retracement phase. Over the past week, the buyers have desperately defended the $209.3 support.
A drop toward $196.9 would not be a buying opportunity, given the higher timeframe downtrend.
The rally toward $255 likely came as a liquidity hunt. There still is a pocket of unswept short liquidations around $260. The rally earlier this month peaked at $255 and has retraced since then.
In the short-term, despite the H4 chart’s structure, a bounce up to $227 and $243 were possible. It was more likely that prices would continue below $200, due to the bearish momentum seen since May.