Bitcoin Cash strong despite altcoin sell - off

By James Gray·29 October 2020·1 min read

Key Points

Bitcoin Cash bounced sharply off key support levels and climbed to $280 before momentum faded and prices retreated to settle near $266.
While BCH found footing, Bitcoin suffered a sharp decline from h

Bitcoin Cash bounced sharply off key support levels and climbed to $280 before momentum faded and prices retreated to settle near $266. While BCH found footing, Bitcoin suffered a sharp decline from highs of $13,800 down to $12,932 on the same day. Ethereum, XRP, Polkadot and Litecoin each shed more than 3% in the broader selloff.

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BCH trades within an ascending channel with upward momentum. Bulls aim to retest the $300 resistance level. To get there, they need to push above $270 and reclaim yesterday's highs. Once traders defend that level as support, they could drive toward $300 within the coming days. On the hourly chart, the MACD shows bulls in control. If selling pressure builds, traders could rely on the 100-hour moving average at $267 as a potential floor.

If the price reverses downward, sellers gain the advantage. Should BCH fall to $260, traders must defend the 100-day moving average at $256.96. A breakdown past that level opens the way to test the 200-day average at $247.27 and the 50-day at $237.70.

Crypto Michael, a technical analyst, cautioned traders away from altcoins. "This isn't the moment to buy alts," he says. "In trading you wait for confirmation before you move. With altcoins, that means seeing Ethereum strengthen and Bitcoin land on solid ground. Neither is happening."

At the time of writing, BCH trades near $269. Buyers need to hold this level or watch sellers take charge.

MiningPool content is intended for information and educational purposes only and does not constitute financial, investment, or legal advice.

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