Bitcoin Cash (BCH) Surges 14%: Is the Bullish Trend Here to Stay?
Bitcoin Cash (BCH) saw a significant surge of over 14% in just 24 hours, reaching above $450, marking its highest level since mid-June. The bullish momentum of BCH coincided with Bitcoin (BTC) also experiencing a rise, nearing $70,000 after a 3% gain in 24 hours. As of the latest update on July 29, BTC was trading around $69,503.
Factors Driving the BCH Price Rally
Similar to Bitcoin, Bitcoin Cash faced challenges in recent weeks, including selling pressure linked to the potential Mt. Gox sell-off. Despite these hurdles, both cryptocurrencies displayed resilience, with BCH benefiting from positive sentiment among Mt. Gox customers who opted to hold rather than sell their assets.
Recent announcements by former US President Trump at the Bitcoin 2024 conference also stirred optimism within the cryptocurrency market. Trump’s commitment to making the US a hub for cryptocurrencies and establishing a Bitcoin reserve for the country bolstered positive sentiment among investors.
Moreover, prominent figures like Kim Dotcom expressed confidence in the future of cryptocurrencies, including Bitcoin Cash, dismissing concerns about potential government crackdowns on digital assets.
Price Prediction and Analysis
Bitcoin Cash’s price surged above $400, testing a crucial resistance zone. A breakthrough at this level indicates bullish strength breaking through a significant horizontal barrier. The current retesting of previous support levels suggests the possibility of BCH reaching new year-to-date highs.
If the momentum continues, the psychological level of $1,000 could emerge as a major short-term target. Additionally, a potential rally to surpass the highs seen during the 2021 bull market may be on the horizon, especially if Bitcoin leads another massive surge in the cryptocurrency market.
Technical analysis indicates that indicators like the relative strength index (RSI) and moving average convergence divergence (MACD) are supportive of buyers. While a retracement to retest previous levels may occur, a break below could shift BCH’s price towards the key support zone around $350.
