The positive dynamics of the price in January did not miss the BCH market. The last 4 weeks have been clearly focused on the critical range $450-$500 test. In fact, since writing the previous article, buyers have begun to implement our main scenario. Though, three previous times (18 November, 19 June, 20 February) sellers prevailed in this range and organized a strong downward trend. Therefore, the main question at the moment is whether the consolidation within the global triangle will continue with the final target in the range of $260-$290?
What is the importance of the BCH price range of $260-$290?
This BCH range becomes crucial for two reasons. For the first time, the main liquidity of the coin has been concentrated in it. If we analyze the latest medium-term trend of buyers, we see that only after a firm fixation above the mark of $260 buyers decided to break the local price zone of $310-$330:
The second reason is the global trend line, which keeps the BCH price from December 2018. Now it passes near the range of $260-290.
The test of $1840 is only possible after fixing above $500
Since the price is now at a critical point, and the probable BTC correction may affect the BCH market in different ways, it is worth waiting for the range of $450-$500 to break. If buyers can break through and fix above this range – the next global target is at $1840.
If we analyze the interest of investors in BCH, the level of daily volumes suggests that BCH has every chance to be popular in 2021. According to CoinMarketCap the daily trading volumes are $5,827,264,161. This is the 6th result among all crypto projects.
We hope that by the end of January the BCH price will match the medium-term direction of the price movement. For now, we can only follow the last serious liquidity battle.