Bitcoin Cash may close today as the top gainer. Following the announcement of the approval of Grayscale ETF, the entire crypto market came alive with a significant increase in and the value of major assets.
BCH is no exception to the general bullish sentiment in the market. As a result, it retested and broke through several resistance, returning to its ten-day high. It is also seeing one of its biggest positive performances in almost 2 months.
Data from coin tracking platform Coinstat gives further insights into what transpired over the last 24 hours. As per the report, the altcoin was mostly quiet during the early hours of the current intraday session. Some of the biggest moves that started happening at 14;00 (UTC). The candle representing trading action during the two-hour timeframe, hit a high of $214 after opening trading at $193. Although it saw correction, it may close with an increase of almost 8%.
Due to this change in trajectory, the asset crushed its strongest resistance within the last 10 days. The $200 barrier succumbed to superior pressure as it broke for the first time within this timeframe. However, it is worth noting that this is not the first time BCH is testing at this critical mark. For example, on Sunday, it kicked off trading at $190 and surged to a high of $201. Afterward, it saw corrections and drew to a close at $197. In the end, it registered gains of more than 4%.
The most recent hike and the value of this key asset begs questions like: How will it perform in the coming days? Let’s turn to the chart
Bitcoin Cash May Retest $260
Before going fully into what the chart says, let’s see how the altcoin reacted to previous increases like this.
A closer look at the one-day timeframe offers two possible outcomes. For the first, bitcoin cash may experience significant decreases in the next 24 hours. This has played out on different occasions. One such was on May 9, when the asset gained almost 10% but lost more than half during the next intraday session. If this scenario plays out, the cryptocurrency may retest the $200 support within the next 24 hours.
Another likely outcome is a continuation of the uptrend. A prime example of this happened on June 23 when the asset gained more than 36% and continued the increases during the next 24-hour period. As a result, it recorded gains of 16% as it continued to spree and crushed several resistances. If this happens, the altcoin may make an attempt at the $240 resistance.
However, the charts support the bullish predictions as several indicators are positive at this time. For example, the 12-day EMA intercepted the 26-day EMA from below a few hours to the time of writing. This means that BCH just had a bullish divergence on MACD and may experience further price increases.
In the same vein, the related strength index spiked in response to the sudden increase in buying volume. It opened the current day at 36 but may close at 58. While this may not be a definitive metric to measure an incoming uptrend, it shows the current market trends which may continue in the coming days.
Over the next five days, one of the most important levels to keep an eye on is the $215 support. During the previous bull run, several downtrends bounced off the mark. However, after it broke the asset dropped to a low of $164.
