Bitcoin Cash (BCH) has witnessed an extraordinary price surge, soaring by 75% in a mere week. This notable ascent has been accompanied by a substantial inflow of $1.2 billion in trading volume.
Bitcoin Cash’s recent remarkable upward trend can largely be attributed to its listing on the EDX exchange.
EDX is a trading platform supported by prominent financial institutions such as Fidelity, Schwab, and Citadel.
This listing has amplified market interest and spurred a surge in the value of Bitcoin Cash over the past three days, where it experienced a remarkable increase of over 50%.
As Bitcoin Cash maintains its upward momentum, investors eagerly scrutinize the catalysts behind this surge and its price prediction.
Bitcoin Cash (BCH) Witnesses Surge in Open Interest, Fostering Hopes for Institutional Adoption
According to Coinalyze, the open interest for Bitcoin Cash (BCH) has surged by an impressive 77%, reaching a nine-month high of $135 million.
This significant increase indicates a shift in positive sentiment towards BCH, driven by the anticipation of potential institutional adoption following its listing on EDX.
Bitcoin Cash emerged in July 2017 due to a split from the original Bitcoin blockchain. It experienced a notable surge during the 2017 bull market, reaching a record high of $2,947.
However, compared to its counterpart Bitcoin, Bitcoin Cash has faced challenges in achieving widespread adoption as a payment network.
In the past week, the total value of Bitcoin Cash transactions exceeding $100,000 has reached a significant $129 million.
In contrast, Bitcoin has processed an incredible $75 billion worth of transactions during the same period.
These figures highlight the differences in transaction volumes between the two cryptocurrencies.
The rise in open interest indicates growing optimism about Bitcoin Cash’s future, particularly in institutional adoption.
The increasing confidence among institutional investors is expected to positively impact BCH’s liquidity, market demand, and overall value.
Bitcoin Cash Price Prediction
An analysis of the Bitcoin Cash (BCH) price movement reveals a significant breakthrough above the double top resistance level at $120.
Prior to this, there was a strong upward trend that surpassed the obstacle at $163.17, which is also supported by the 23.6% Fibonacci level.
The daily timeframe indicates a solid bullish candlestick pattern, signaling a high level of buying interest among investors.
Consequently, BCH has surged toward the key resistance level of $200. While it has not yet breached this level, minor corrections may lead to a retracement toward the $163 level.
Additionally, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators on the daily timeframe are currently in the overbought zone. This suggests that the bullish momentum may be approaching exhaustion.
This presents an opportunity for sellers who are seeking to profit from a potential correction below the $150 level, with target support levels at $130 and $120.
If the price breaks below $120, it could create further selling opportunities with targets at $111 or even $100.
On the other hand, a decisive break above the $150 level could fuel Bitcoin Cash’s ascent to new highs at $161 or $172 levels.
Traders and investors should closely monitor the price action around this pivotal level of $150 as it holds significant influence over Bitcoin Cash’s short-term trajectory.
It’s important to note that Bitcoin Cash is not currently displaying indications of reaching the $1,000 level in 2023.
Therefore, focusing on the immediate price levels and key support/resistance areas becomes even more crucial.
For traders, staying updated on the latest market developments and using appropriate risk management strategies to make informed decisions is recommended.