BCH hovered over a key support level with the possibility of another rally.
The rising mean coin age hinted at the network-wide accumulation of BCH.
The huge gains enjoyed by Bitcoin Cash [BCH] holders in June almost feel like a distant memory. Since the huge run from $104 to $329, BCH has gone on a corrective dip that has wiped away almost 50% of the June gains.
Despite the deep retracement, the bullish bias remained on the higher timeframes. With the price hovering over a crucial support level, another wild rally could be imminent for BCH.
Key support level could unlock massive gains
Source: BCH/USDT on Trading View
Looking back to BCH’s massive pump in June highlighted a key price trend. Price ranged between the $100 – $120 price zone before embarking on the huge rally.
BCH’s press time price action on the 12-hour timeframe mirrored the June move with the price hovering above the $186 support level. This presents buyers with another opportunity for a significant rally.
The Moving Average Convergence Divergence (MACD) indicator posted a bullish crossover along with green bars above the zero level to signal bullish intent. Likewise, the Relative Strength Index (RSI) jumped out of the oversold zone with the Chaikin Money Flow (CMF) also pushing strongly to the zero mark after hovering for long in negative territory.
A bullish push from this level will retain BCH’s bullish sentiment with $250 and $300 attainable price ranges. However, if bears break below this support level, it will signal a shift in momentum with sellers able to target the $130 to $150 price levels.
Bulls have been accumulating BCH
Source: Santiment
According to data from Santiment, the 90-day mean coin age has been rising constantly since mid-July. This hinted at a network-wide accumulation of BCH.
Although the mean coin age was rising swiftly, the funding rate remained largely negative throughout the period. A shift in the funding rate would be essential to bulls flocking into the market and pushing BCH on another price rally.