- Bitcoin Cash has been stagnating around the $230 level after rebounding from the $204 support it tested a few days ago.
- Investors remain hesitant to revisit the previous support if the next short-term target of $250 is not broken in the coming days.
Bitcoin Cash (BCH) has been one of the most watched altcoins in the crypto market. At the time of writing, it has been one of the best performing altcoins in the last 24 hours. At the time of writing, the Bitcoin fork has recorded a surge of almost 10 percent in the last 24 hours to reach $232. At the same time, the daily transaction volume has jumped more than 60 percent to reach almost $300 million. The breakout follows a short-term trend that saw the digital asset retest the $200 local support.
In the absence of any major announcements on the technical development of blockchain, or catalysts for adoption, this move seems to be driven by the technical setup of the digital asset in the market. Earlier, the Relative Strength Index (RSI) rose above the neutral 50 mark and stood at 58. This is a bullish sign indicating buying pressure. This narrative is further supported by the Chaikin Money Flow (CMF) which highlights capital inflows increasing with a reading of +0.05.
This breakout has taken many by surprise, leading to massive liquidation. Coinglass data shows BCH recorded losses worth $650K, about 95.11 percent of the total liquidations in the last 24 hours.
Bitcoin Cash (BCH) to Trigger 2024 Price Rally
Like Bitcoin, Bitcoin Cash is scheduled to halve in price in April 2024. Similar to Bitcoin, BCH does this once every four years in an attempt to limit supply by cutting mining rewards in half. After the upcoming halving, the block reward will be reduced from 6.25 BCH to 3.125 BCH. Investors are optimistic about this event and hope to see the digital asset return to its all-time high of $3,785 reached almost 6 years ago.
In addition to the halving of the price, Bitcoin Cash is also increasingly enjoying its association with Bitcoin as it is not a security. The US Securities and Exchange Commission (SEC) recently released a list of tokens that are considered securities. Among the highlighted coins include Polygon (MATIC), Cardano (ADA), and Solana (SOL). In fact according to SEC chairman Gary Gensler, the only coin that the SEC can rule out with certainty as not being a security is Bitcoin.
A fork of Bitcoin, Bitcoin Cash is also not considered a security. This presumption was recently affirmed after the altcoin was listed on EDX Markets, a new cryptocurrency exchange backed by Citadel Securities, Fidelity Digital Assets, Charles Schwab Corporation, and Sequoia.
