The crypto market is mostly trading in red in the early Tuesday session, which marks the first day of July, with over $202 million in crypto liquidations, according to CoinGlass data.
However, despite the drop, some coins, including Bitcoin Cash, are standing out in green, with traders making moves, perhaps motivated by the need to feel something on an otherwise dull market day.
Bitcoin Cash, the original fork of Bitcoin, is gaining traction as most crypto assets trade in the red, rising 5.14% in the last 24 hours to $516.62 and 12% weekly.
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Bitcoin Cash has marked two consecutive days in green since June 28, with today set to be the third. The surge has crossed $500, reaching an intraday high of $528, marking a new yearly high for the Bitcoin fork.
Two reasons
Bitcoin Cash triggered a technical breakout, accelerating its upward trend while also benefiting from overall market momentum.
BCH has been steadily rising since April, with the surge breaching above the daily moving averages of 50 and 200 at $435 and $395, respectively, which had previously capped its price action this year. The rally progressed, surpassing the $480 to $500 barrier range.
The Relative Strength Index, or RSI, is currently at 66, indicating strong positive momentum without becoming overbought. This signal indicates that buyers are in control, but there is still an opportunity for further gains before reaching the above 70 overbought zone, where profit-taking frequently occurs.
A "golden cross," a bullish technical analysis signal that indicates a probable upward trend in an asset's price, occurred on the BCH daily chart in June. It happens when a short-term moving average (MA), generally the SMA 50, crosses above a longer-term moving average (commonly the SMA 200). This pattern indicates that buying pressure is building, which could lead to a sustained rally.
