Highlights:
- Bitcoin Cash is range-bound between the $$365.95 resistance and $294.53 support
- Bulls are increasingly pushing against the $365.95 resistance in the short-term
- A rally through the $365.95 resistance could see BCH rally to $400 short-term
Bitcoin Cash (BCH) is trading at $363.23 today, with a slight positive move of 0.12%. From the charts, Bitcoin Cash is consolidating, a price action that started in August. However, there is optimism that Bitcoin Cash could soon break out of this resistance.
Advertisement
Technical Analysis – Bitcoin Cash Range Bound but Bullish Sentiment on the Rise
Bitcoin Cash continues to trade in a range between $365.95 resistance and support around $294.53. It has been oscillating at this level for the last few months. If bulls take control and push Bitcoin Cash through the $365.95 resistance, a rally to $439.38 could follow.
On the contrary, in the scenario where bears take over and push the price lower, the key level to watch would be the $294.53 support. A break of this point could push the price to a low of $250 in the short term.
The Case for a Bullish Breakout
Ideally, the scales are tipped neither in favor of the bulls nor the bears. However, technical and fundamental factors indicate that Bitcoin Cash has a better chance of moving up in the short run. One of the most influential factors in this is how bullish the market has turned out thanks to the increasing Bitcoin price.
🚨 Double bottom pattern spotted in #BitcoinCash! 📷#crypto #trading #BCH see more double bottoms here – https://t.co/pF1IoMr2wU pic.twitter.com/5A4wvQi8jO
— iQquant (@forquants) October 17, 2024
Bitcoin was able to break $68,000 recently, and could soon be headed to prices as high as $70k. This renewed vigor in Bitcoin could boost confidence across the crypto market, including Bitcoin Cash and other altcoins.
Similar Supply Dynamics to Bitcoin
Considered by many to be a ‘sibling’ of Bitcoin due to their shared history and similar supply dynamics, Bitcoin Cash is widely expected to rally as demand rises. Both Bitcoin Cash and Bitcoin had their halving events in April and the scarcity this brought could play a significant role in its price action going forward.
With Bitcoin Cash increasingly gaining adoption as an investment and a means of payment, the supply aspect impacting the price could come into play over time. It creates the potential for Bitcoin Cash to rally to new highs, especially if Bitcoin makes new highs.
Investor Sentiment Increasingly Bullish
Aside from the technical indicators, sentiment around Bitcoin Cash is turning bullish. As per the sentiment analysis data provided by the analytics platform CoinMarketCap, 98% of investors are currently optimistic about Bitcoin Cash, while only 2% are pessimistic. This shows a strong sentiment and explains why there is an increased push towards resistance for Bitcoin Cash at the moment.
What Next for Bitcoin Cash?
According to the prevailing market conditions, investors expect Bitcoin Cash to make significant movements in the short term. Provided Bitcoin can hit the $ 70,000 mark, one can be certain that Bitcoin Cash will surge past the $365.95 resistance level, and potentially rally through $400.
Nonetheless, prudence is still in order. There are concerns that if Bitcoin’s current uptick is halted or the larger market turns bearish, Bitcoin Cash could slide back towards the $294.53 support level. If that happens, it could easily break down and push to prices below $250. However, at this point, the chances seem to favor a bullish breakout. With favorable conditions in the market and bullish technical indicators, Bitcoin Cash may realize a further upward movement soon.
Advertisement
