If you have been eyeing Bitcoin Cash at $110, you may have to wait a little longer. A contagion of risks brewing in the market forced a sharp selloff, pushing Bitcoin Cash to below $110. The level was crucial support, with the token forming multiple bottoms. BCH tested a lower level at $87 but has since recovered to above $100. Should you be optimistic?
Cryptocurrencies are known for sudden moves in the market. Just as the slip below $110 happened unexpectedly for BCH, a recovery above the level can too. Buyers should be optimistic and be ready to buy once that happens. But that should be taken with a grain of salt.
Crypto winter is far from over, as underlined by this week’s selloff. The macro concerns have been the main highlight recently. So far, investors have developed a thick skin against the possible macro forces, including tighter economies. For that reason, most cryptocurrencies have been consolidating – an example of BCH at $110. However, markets seem to have forgotten a key factor – the liquidity state of crypto firms.
The collapse of FTX has brought a new perspective to crypto markets – the financial health of crypto firms and exchanges. As recession bells continue to ring, how many will survive to see a bull market coming? As it turns out, this fear will linger, and lasting recoveries are bound to stay muted. So, should you snap BCH or not?
BCH regains – heading back to above $110?
Source – TradingView
A sharp sell-off made BCH invalidate bullish reversal signs already forming at $110. The MACD indicator remains in the bearish zone, although the weak momentum has slightly improved. $110 is the level to watch.
Should you buy BCH?
If you are the “buy now, sell tomorrow,” type, you are better off staying away from BCH for now. With weak momentum, the token will hardly generate returns.
However, long-term buyers should consider BCH on their waitlist. BCH’s safety from a potential further slump will be confirmed if the token recovers above $110.