Investors should avoid these levels to reduce losses

Investors, keeping a close eye on Bitcoin Cash and wanting to avoid losses, should avoid these crucial price points.

As of this writing, Bitcoin is still showing a bit of bullishness, despite losing a few digits from its price. BTC has pulled back below the $20K mark and is now trading at $19,998, according to data from Coingecko.

Short-term support for the bears came from rejection wicks at the $20,500 level. Even Bitcoin Cash, the fork of BTC, is not immune to this problem.

BCH is in a bind, even though Bitcoin lost the psychological support of $20k.

There have been recent reports about a number of developments with potentially profound implications for BCH. This report indicates that Bitcoin Cash transaction volume has been below the average of 27,734 daily transactions.

Lower transaction volumes are a negative indicator for potential and existing BCH investors, so this could be a problem.

Bitcoin Cash: Formidable wall for bulls

The value of Bitcoin Cash fell 35.50% between the rally on July 29 and the low on September 19, before recovering 17.40%. After that time, however, the price of Bitcoin Cash remains stable.

These days, you can buy Bitcoin Cash for as low as $96,559 and as high as $166,025. Furthermore, BCH has a support level of $112,246 and a resistance level of $125,912.

Although the CCI and Stoch RSI readings are bullish, the declared resistance level remains a formidable hurdle for BCH bulls to overcome.

Although Chaikin’s cash flow index is optimistic, it is establishing a downward trajectory, indicating that the speed of sale is increasing.

The gloomy forecast of the CMF index, on the other hand, is more pronounced in the 4-hour time frame.

The 4-hour CMF is -0.05, indicating that the sellers are gaining control of the BCH market. Currently, the question is whether BCH can still be recovered.

Possible Recovery? Or further decline?

The BCH support line remains unchanged. However, there are two resistance levels that investors and traders should target: $125.912 and $138.835.

Source: TradingView

The previous level was breached twice on Aug 23 and Sept 9, but the bulls could not sustain the breakout, resulting in the price falling to $112.246.

A breakout of the resistance at $125.912 can be interpreted as a psychological buy signal for investors. Since the fall of September 13, a modest uptrend is building in the 4-hour period.

A strong close in today’s trade could help the bulls maintain momentum and eventually break above the indicated resistance levels.

BCH market cap at $2.28 billion | Featured image from CriptoFacil, Chart:

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