Bitcoin Cash (BCH) leads the crypto market's rally today. This altcoin surged 5.6% in the last 24 hours, reaching an 8-month high of $526.7 as of the time of writing.
With technical indicators giving positive signals, BCH's price seems ready to extend its rally in the short term.
Bulls control BCH
Data from BCH's BBTrend indicator shows that the uptrend is strengthening, as this indicator is currently at 9.4. Thus, there is a high probability that the price will continue to rise in the short term.
On the daily chart, the green histogram bars of BBTrend have been continuously expanding over the past few days – a clear sign that buying pressure is increasing along with investment demand for BCH.
The BBTrend indicator measures the strength and direction of a trend based on the expansion and contraction of Bollinger Bands.
When this indicator shows increasingly larger green histogram bars over several consecutive sessions, it indicates that the uptrend is being solidified.
For BCH, this model shows that the bulls are gaining control, volatility is increasing in an upward direction, and prices are likely to continue rising higher.
Additionally, the Smart Money Index (SMI) also supports the bullish outlook. At the time of writing, the indicator is at 85.1, up over 220% since June 5.
The Smart Money Index (SMI) tracks the activity of seasoned investors or institutions by analyzing market behavior during the first and last trading hours. When the SMI decreases, it implies selling activity or declining confidence from this group of investors — reflecting pessimistic sentiment or expectations of falling prices.
Conversely, when the SMI indicator rises, it indicates that key investors are increasing their buying activity, reflecting a growing level of confidence in the asset. Therefore, the steady rise of the SMI over the past few weeks suggests strong buying pressure supporting the current rally of this coin.
BCH heads towards higher peaks as buying pressure increases
BCH may continue to climb higher in the coming days, thanks to increasing demand driving buying pressure. If the accumulation trend continues, this coin could extend its rally and approach the $556.4 mark.
However, if demand weakens and profit-taking activity emerges, BCH's price risks dropping to the $490.8 region.
If this support level is broken, BCH could continue to slide deeper towards the $444.7 region.