Bitcoin Cash ($BCH ) is currently outperforming the market, becoming the most profitable asset of the day with a growth of 3%. This continues a multi-week rally, fueled by increasing interest from investors.
Currently, the price of BCH has firmly settled above key resistance levels, and the technical picture indicates the possibility of further growth in the short term.
BCH on the wave of Bitcoin
Yesterday's surge in BCH coincided with another attempt by Bitcoin to update its historical maximum of $111,968. On Monday, $BTC briefly exceeded the $108,000 mark, which revived bullish sentiment in the market and pushed altcoins, including BCH, upwards.
At the moment, BCH is trading at $476.28. The daily growth continues the upward trend that began on April 7. On the daily chart of BCH/USD, it can be seen that the coin is steadily updating its highs and lows — a classic sign of a strong bullish impulse.
At the moment, BCH is trading above the Leading Span A and B lines of the Ichimoku Cloud. This reflects the predominance of bullish sentiment among holders. The lines serve as dynamic support levels: the first is at $435.65, and the second is at $413.30.
The Ichimoku Cloud indicator tracks the strength and direction of the trend and helps identify potential support and resistance levels. When the asset's price is above the cloud, it signals a strong bullish trend. The area above the cloud is considered 'positive' for buyers, and the market views BCH optimistically.
An additional confirmation is the positive funding rate: it currently stands at 0.0006%, indicating a predominance of long positions in the futures market.
The funding rate is regular payments between traders in perpetual futures contracts aimed at aligning the futures price with the spot price. If the rate is positive, it means long traders pay shorts, and bullish sentiment dominates.
BCH aims to break $490
Currently, BCH is trading just below an important resistance level at $490.89. If demand rises sharply, the price may break through this barrier and settle above it, turning it into a support zone. A successful breakout will open the way to $556.60 — a level that the altcoin last reached in December.
However, if profits are taken, the bullish scenario may not materialize. In that case, the price could pull back to $444.74. If this level does not hold, BCH may drop even lower and test the dynamic support at the Leading Span A line of the Ichimoku Cloud at $435.65.
