What next after Bitcoin Cash [BCH] taking back $110 from riding BTC’s coattails
- BCH’s correlation with BTC has led to a rally in price
- If positive conviction remains, the coin’s value can be expected to increase further
Because of its statistically significant positive context with Bitcoin [BTC]Bitcoin Cash’s [BCH] The price has also risen in the last 24 hours. This follows the decision by the US Department of the Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) to restore all customer deposits at failed Silicon Valley Bank (SVB).
When SVB collapsed on March 11, BCH fell below $110 and fluctuated between $109 and $110 for most of the weekend. But as BTC’s price surged in early trading hours on March 13 after federal regulators decided to make all SVIB depositors whole, BCH regained $110 and surpassed it.
Still on a rally at press time, BCH’s price had risen 5% in the last 24 hours. At the time, the cryptocurrency was trading at $127.31.
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Are the bulls here to stay?
An assessment of BCH’s price movement on the daily chart revealed that the recent rally was leading up to the start of a new bull cycle.
At press time, the Moving Average Convergence Divergence (MACD) was preparing to cross the trend line in an upward direction. When this happens, a new bull cycle will begin and BCH’s price will increase further.
Thanks to better sentiment and increasing accumulation, the Relative Strength Index (RSI) regained its place above the 50-neutral line and was set at 52.18. Similarly, the dynamic line of BCH’s Chaikin Money Flow (CMF) gave a positive reading of 0.17.
This was yet another piece of evidence supporting the notion that BCH’s price will rise further, especially if positive sentiment persists.
Realistic or not, here is BCH’s market cap in BTC’s terms
Set up for success on the chain
According to on-chain data provider Santiment, BCH has seen sustained demand over the past 24 hours. As a result, the number of daily active addresses trading the coin has increased by 100%. At press time, 132,370 addresses traded BCH.
Greater network activity is a known recipe for a sustained increase in the price of an asset. With BCH’s weighted sentiment still in positive territory, if the number of active addresses continues to rise, buying momentum will grow. This will eventually lead to another significant price increase.
Consider this – In the last 24 hours alone, BCH’s open rate has risen by 5%. Generally, an increase in open interest is considered a bullish signal, especially as it suggests that there is growing optimism and confidence in the asset’s price direction.
Therefore, BCH’s price may continue to rise. However, a decline in the king coin’s price could also cause a drop in BCH’s value.