Bitcoin Cash (BCH) has been on a remarkable rise in recent weeks, capitalizing on Bitcoin's bullish momentum to reach unprecedented highs. This altcoin has seen a 3% increase in the past 24 hours, continuing a strong rally that is attracting a growing number of investors.
The rebound of BCH coincides with the latest attempt by Bitcoin to reach its all-time high of $111,968. On Monday, the flagship cryptocurrency briefly surpassed the $108,000 mark, reviving a sense of euphoria across the crypto market and propelling altcoins like Bitcoin Cash along with it.
Currently trading at $476.28, BCH continues its bullish trend that started several weeks ago. Data from the daily chart BCH/USD shows that this altcoin has been moving in a steady upward trend since April 7, regularly setting higher highs and higher lows – a classic sign of a strong bullish momentum.
Furthermore, Bitcoin Cash is trading above the Span A and Span B lines of its Ichimoku cloud, reflecting a clear dominance of bulls in the market. These dynamic lines now serve as support levels at $435.65 and $413.30 respectively.
Analysis of the Ichimoku cloud indicates that BCH is in a strong bullish trend. The area above the cloud is considered a bullish zone, highlighting positive investor sentiment towards this altcoin.
Moreover, the positive funding rate of 0.0006% on BCH futures contracts reflects a clear preference of traders for long positions. This parameter reinforces the notion of a sustainable bullish momentum for Bitcoin Cash.
Currently, BCH is trading just below a key resistance level at $490.89. If demand intensifies, the altcoin could break through this long-standing barrier and establish it as a new support. Such a scenario would then pave the way for a rally potential towards $556.60, a level not seen since last December.
However, a wave of profit taking could challenge this bullish outlook. In that case, Bitcoin Cash could retreat to $444.74 before retesting the dynamic support line Span A of the Ichimoku cloud at $435.65.
Before making any transactions, remember to study market trends and adjust your investment strategy accordingly.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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