After the news of Grayscale’s victory over the SEC quickly lifted crypto markets, the biggest notable beneficiary has turned out to be Bitcoin Cash, due to its increased exposure. This phenomenon was similar to what we saw in mid-June when the ETF news was first announced.
Both BTC and BCH will continue to benefit from any positive news related to Grayscale and further indications that ETFs are becoming more accessible.
Source: Santiment – Start using it today
Bitcoin Cash has surged over 20% and is now trading around the $220 mark. This makes it the best performing top 20 coin this week. When BCH started to outperform a few months ago we saw:
- Bitcoin pump from $26k to $31k
- Major alts gain +10-15%
Obviously you can’t expect the exact same move to repeat, but it’s worth paying closer attention whenever an anomaly like Bcash strength keeps showing up.
Per Santiment, BCH also saw a jump in transaction volume which was the highest since August 17th when the market crashed.
The bullish candle positively ends the weeks-long consolidation above the $180 and 200-day EMA confluence. This amounts to a 23.60% bounce from the 200-day EMA in the last eight days, as the BCH coin price now faces the supply inflow at $228. Coinciding with the 38.20% Fibonacci level, the overhead supply leads to a 3.07% pullback. However, the pullback seems nothing more than the retest of the trendline breakout, and a post-retest reversal might result in a $228 breakout.
The MACD Line is below the MACD Signal Line and RSI is below 45 but momentum may have bottomed since MACD Histogram bars are rising, which suggests that momentum could be nearing another upswing.
The nearest support zone is $140 – $150. The nearest resistance zone is $200 (previous support), then $250.
You can view our Bitcoin Cash price prediction here.
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