Bitcoin – BTCUSD
The Bitcoin Cash price has broken out. The BCH is trading at $683, which is 53% above the two-week low of $441 and 13% below the year-to-date high of $775. Its market cap has surged to more than $13 billion.
What happened: Bitcoin Cash has regained its momentum, in part because of the recent performance of Bitcoin. The BTC price has found some resistance slightly below its all-time high of $62,000 but analysts believe it is just a matter of time before it makes a bullish comeback. Indeed, analysts at JP Morgan expect the price to soar to more than $100,000 in the next few months.
As I have written before, Bitcoin Cash is often viewed as a proxy for Bitcoin. Many small traders who can’t afford the hefty $60,000 to buy a BTC, use their limited resources to buy BCH. It is a similar process in how many traders buy silver instead of gold.
The Bitcoin Cash price is also soaring ahead of the much-awaited Coinbase direct listing. In a report yesterday, the firm said that it generated billions of dollars in the first quarter. Indeed, its Q1 income was substantially higher than what it made in 2020. Bitcoin Cash is one of the most actively traded assets in the platform.
The four-hour chart shows that the BCH price formed a double-bottom at $442 in the past few weeks. Its neckline was at $608. In technical analysis, this pattern is usually a bullish sign. And this week, the price managed to move above the neckline.
The uptrend is being supported by the short and longer-term moving averages while the Relative Strength Index (RSI) has continued rising. Therefore, in my view, the current momentum will continue as bulls target the YTD high of $775. On the flip side, a drop below the support at $608 will invalidate this forecast.
