The Bitcoin Cash price has struggled this week even after its elder brother surged to record highs. The BCH price is trading at $632, which is about 22% below its highest level this year. This performance brings its total market capitalization to more than $11.9 billion, making it the 18th biggest cryptocurrency in the world. It sits between Binance USD and Algorand.
Historically, Bitcoin Cash has been an excellent way to take advantage of Bitcoin’s spectacular rally. Like Litecoin, the two currencies have a close correlation. This correlation was probably because of the nominal pricing of the two currencies. While Bitcoin is trading at more than $60,000, Bitcoin Cash is trading at about $632. This means that one can make more money by just buying BCH instead of BTC.
However, recently, the correlation between the two has diverged. For one, while Bitcoin surged to an all-time high, BCH remains substantially below its high. This performance is mostly because Bitcoin saw elevated demand as ProShares launched its futures Exchange-Traded Fund (ETF). At the same time, the lag is mostly because of the fact that most altcoins have struggled to move to their highest levels in May this year.
The four-hour chart shows that the BCH price has been in a tight range recently. The coin has struggled to move above the key resistance level at $655, which is also along the 50% Fibonacci retracenent level. It has also formed an ascending triangle pattern that is shown in red. Interestingly, this triangle is nearing its level of convergence. The bullish trend is also being supported by the 25-period and 50-period moving averages.
Therefore, the coin will likely have a bullish breakout as investors target the 61.8% retracement level at $678. This price is about 10% above the current level. On the flip side, a drop below thekey support level at $600 will invalidate the bullish trend.
This post was last modified on %s = human-readable time difference 07:38