You may have to wait a little longer if you've been watching Bitcoin Cash at $110. A market risk contagion prompted a sharp selloff, pushing Bitcoin Cash below $110. With the token forming multiple bottoms, the level was critical support. BCH tested a low of $87 but has since recovered to trade above $100. Should you be upbeat?

Cryptocurrencies are known for their volatile market movements. Just as BCH's drop below $110 was unexpected, so can a recovery above the level. Buyers should be optimistic and ready to buy when this occurs. However, take this with a grain of salt.

As evidenced by this week's selloff, crypto winter is far from over. Recently, the main focus has been on macro issues. So far, investors have developed a thick skin in response to potential macro forces such as tighter economies. As a result, most cryptocurrencies have been consolidating, with BCH at $110 being an example. However, markets appear to have overlooked an important factor: the liquidity of crypto firms.

The demise of FTX has introduced a new angle to crypto markets: the financial health of crypto firms and exchanges. How many people will survive to see a bull market emerge as the recession continues to ring? As it turns out, this fear will linger, and long-term recovery will be limited. Should you buy BCH or not?

BCH reclaims - heading back to $110?

A sharp sell-off rendered BCH's bullish reversal signals at $110 invalid. Although the weak momentum has improved slightly, the MACD indicator remains bearish. The level to keep an eye on is $110.

Should you invest in BCH?

If you are the "buy now, sell tomorrow" type, you should avoid BCH for the time being. With little momentum, the token will struggle to generate returns.

Long-term buyers, on the other hand, should put BCH on their watchlist. If BCH recovers above $110, it will be confirmed that it is safe from further decline.