Bulls Out of Fuel? Bearish Takeover Takes Aim at Bitcoin Cash

• Bitcoin Cash [BCH] has seen a bearish takeover below $250.
• Sellers are looking to drive the price to the $186 – $220 level, and shorts hold a 52.21% advantage on the exchange long/short ratio.
• Another rally by BTC to $31k could prop up Bitcoin Cash at the current support level with bulls able to target the $280 price level.

Bitcoin Cash [BCH] Bearish Takeover

Bitcoin Cash [BCH] dipped below $250 with bears looking to seize control from bulls. With short positions at a greater advantage, sellers are primed to flip price momentum towards the key $186 -$220 level if BTC continues its price correction under $30k.

Technical Indicators Suggesting Change of Momentum

The on-chart indicators hinted at a change in momentum for BCH. The Relative Strength Index (RSI) remained under the neutral 50 and continued to edge toward the oversold zone. The Chaikin Money Flow (CMF) also stayed negative with a reading of -0.14, revealing declining buying pressure and strong capital outflows in Bitcoin Cash’s market cap.

Shorts Hedge Bets on Further Dips

According to Coinglass’ long/short ratio, shorts had a greater share of open contracts for BCH compared to longs with 52:21% respectively, reinforcing bearish sentiment in the futures market. This could see sellers extend their gains towards the critical $186 – 220 level if Bitcoin continues trading below $30k in the meantime.

Bulls Could Target Price Level of 280

The 12-hour timeframe showed that bears had broken below the key support level of 248 for BCH and if buyers regain traction another rally by BTC up to 31K could prop up Bitcoin Cash back up at current support levels allowing bulls an opportunity target price levels of 280 further down the line.

Should Investors Invest?

Before making any financial decisions it is important investors take into consideration all aspects before investing in any asset class as they carry risk along with potential returns, so it is better practice not make any investments without consulting financial advice first from an independent financial advisor if need be