Bitcoin Cash (BCH) Price Prediction: Will BCH Recover After Bouncing from Key Support?

Bitcoin Cash's (BCH) price is currently attempting to bounce back after closing above a key support level that supported the altcoin during the July crash

Bitcoin Cash (BCH) is attempting to recover after finding support at a key level that prevented further losses during the July market crash.

Investors might be preparing for a short-term price increase, as indicated by a period of extreme selling pressure that typically follows record losses.

After witnessing a drawdown last week, BCH price is currently trading at $324. The恐慌 in the crypto market led to massive sales, with some traders booking profits, but overall losses outpacing gains.

As a result, investors realized their highest losses in over a month, suggesting a shift in sentiment. A surge in realized losses often signals that the intense selling pressure may be coming to an end, as traders are potentially stepping away from the market to avoid further losses.

BCH open interest has also seen a significant decline, dropping from $325 million to $196 million over the past nine days. This decrease in open interest reflects a reduction in participation and trading activity.

However, the recent trend shows that this decline in open interest has stalled in the past couple of days. This pause in the downward movement suggests that the selling pressure may be easing and could indicate a stabilization in market sentiment.

As investors stop pulling money out of the asset and selling BCH at a loss, the price could note potential recovery.

Bitcoin Cash price is holding above the critical support level of $310. This support level has also prevented losses in the past, providing optimism for a recovery.

However, a recovery rally will only be confirmed once the 23.6% Fibonacci Retracement level at $343 flips into support. This level is also known as the bear market support floor. A bounce-off from this could send Bitcoin Cash price to $380, which is above the 38.2% Fib line.

But, if the breach of 23.6% Fib fails, BCH might end up seeing consolidation under $343. Treating $310 as the lower limit of the consolidation, the altcoin could invalidate the bullish thesis.

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