Bitcoin Cash (BCH) is leading the market today, rising 3.4% in the past 24 hours, continuing its strong multi-week rally. Increased investor interest is the main driver behind this recovery.
Currently, BCH is trading at $470, above key resistance levels, suggesting further upside in the short term. This is a sign that buyers are in control, and if this trend continues, BCH could break out to higher prices in the near term.
Bitcoin Cash Price Increases
Over the past 24 hours, BCH’s strong breakout coincided with a strong rally in Bitcoin, as the king of cryptocurrencies continues its bid to reclaim its all-time high of $111,968. On Monday, Bitcoin briefly crossed the $108,000 threshold, sparking a return of bullish sentiment in the cryptocurrency market, especially for altcoins like BCH.
As of press time, BCH is trading at $470. The increase in the past 24 hours marks a continuation of the bullish momentum that has been going on for weeks, indicating that buyers are taking control of the market and continuing to push the price up. The daily BCH/USD price chart shows a steady uptrend for the altcoin since April 7, with higher highs and lower lows being set in succession, a clear sign of sustained bullish momentum.
Currently, BCH is trading above both Leading Spans A and B of the Ichimoku Cloud, a prominent technical indicator. This reflects the bullish sentiment of BCH investors. These lines form dynamic support levels below the BCH price, at $435.65 and $413.3, respectively, supporting the coin’s uptrend.
The Ichimoku Cloud is a powerful technical analysis tool that helps track the momentum of a market trend and identify potential support/resistance levels. When an asset trades above these levels, it means that the price is in a strong uptrend. The area above the Cloud is considered bullish, reflecting the optimistic and positive market sentiment towards the asset. For BCH, trading above the Ichimoku Cloud shows that the market is maintaining a positive attitude, supporting the coin's sustainable growth.
Additionally, BCH’s positive funding rate (currently 0.0006%) further strengthens the altcoin’s bullish outlook. The funding rate is a periodic payment between Long and Short traders in perpetual futures contracts, which helps maintain the synchronization between the contract price and the spot price. When the funding rate is positive, it means that Long traders are paying Short traders, indicating that bullish sentiment is prevailing in the market.
With this positive funding rate, investors are favoring Long positions, showing expectations that the price of BCH will continue to increase strongly in the coming time, and the fact that the futures market tends to "lean" towards Long positions shows the persistent optimism in the BCH investment community.
BCH Aims for $490 Breakout
Currently, Bitcoin Cash is trading below the important resistance level of $490.89. If the market demand continues to increase, BCH could easily break this level and turn it into a new support level, creating a strong breakout opportunity. A successful breakout above this price level could push BCH to $556.6, the price the coin reached in December last year, opening up opportunities for sustainable growth for the coin.
However, if there is a sudden profit-taking event, this bullish outlook will be threatened. In this case, BCH could drop to $444.74, which could be a temporary support level. If this level fails to hold, the coin could continue to fall further to retest the dynamic support of Leading Span A in the Ichimoku Cloud, at $435.65.
Therefore, investors need to closely monitor these important price levels to be able to make reasonable trading decisions and avoid risks when the market fluctuates strongly.