Bitcoin Cash Price Forecast: BCH plummets after encountering massive resistance – Confluence Detector

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  • Bitcoin Cash has dropped down after bulls ran out steam near the $260 resistance level.
  • The whales have been quietly accumulating more tokens, which is a positive sign.

Bitcoin Cash enjoyed a bullish upswing between October 7 and October 15, wherein the price went up from $220 to $262. After encountering heavy resistance, the peer-to-peer electronic cash has plummeted to $249.50. In the process, it has managed to drop below the 100-day and 200-day SMAs. The price had since recovered above the latter.

BCH/USD daily chart

BCH/USD daily chart

The daily confluence detector well defines these strong resistance lines for BCH. The confluence detector is a handy tool that helps us visualize strong resistance and support levels. The 100-day SMA coincides with the strong resistance, as shown by the detector. If the price breaks below the 200-day SMA and $242 support line, the next healthy support lies at the 50-day SMA ($235).

BCH confluence detector

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The Flipside: Can the BCH bulls launch a fightback?

The bulls can launch a fightback if they manage to flip 100-day SMA from resistance to support. If they do that, they will gain enough momentum to conquer the $262 resistance line, as well. The bulls will be encouraged by the whales’ actions, who have been on a buying spree. As per Santiment, the number of addresses holding 10,000-100,000 BCH went up from 167 on October 14 to 169 on October 16.

BCH holders distribution

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Key price levels to watch

The bears can stay in control if they regain the 200-day SMA ($245) and flip it from support to resistance. Following that, the sellers will look to conquer the $242 support line. The downside can be capped at the 50-day SMA ($235).

The bulls will need to flip the 100-day SMA ($255) from resistance to support and aim for the $262 resistance line. If this level is conquered, Bitcoin Cash should be able to reach the $290 resistance barrier.   

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