Bitcoin Cash up 12% in 24 hours, analysts expect the rally to continue

On October 15, Bitcoin Cash (BCH) saw a remarkable surge, gaining 12.9% in just 24 hours and trading at $368 at the time of writing. This made BCH the leading gainer in the market, with 24-hour trading volume reaching around $7.26 billion, according to data from crypto.news.

Created in 2017 as a hard fork of Bitcoin (BTC) to address scalability issues, Bitcoin Cash has often followed the price movements of its predecessor. The so-called “Bitcoin effect” has seen periods of significant interest in Bitcoin spill over into BCH, as many market participants view BCH as a cheaper alternative to Bitcoin, providing exposure to the original vision of a decentralized peer-to-peer electronic cash system.

The recent rally in BCH coincides with shifting U.S. political dynamics, as polling trends favored Republicans, who are generally seen as more supportive of cryptocurrency regulation. This has fostered a positive sentiment around Bitcoin Cash, helping drive a $750 million increase in its market cap in just 24 hours.

Bullish Technical Indicators

Technical data shows promising signs for Bitcoin Cash’s price momentum. According to CoinGlass, open interest in BCH futures has risen significantly, increasing from $180 million on October 9 to $236.8 million by October 15. This uptick in open interest suggests growing investor activity and capital flow into BCH futures, signaling heightened speculative interest in the asset.

Community sentiment is overwhelmingly bullish, with 98% of 23,017 traders on CoinMarketCap expecting short-term gains for BCH. Similarly, sentiment on X (formerly Twitter) has turned positive, with multiple analysts predicting continued upward momentum for BCH.

Key Technical Patterns and Predictions

Several analysts have pointed to bullish chart patterns as indicators of more potential gains:

• Dom, a pseudo-anonymous analyst, noted on October 15 that BCH had broken out of a falling wedge pattern, which is typically a sign of a bullish reversal. He predicted that after breaking above the $350 mark, BCH could potentially rise to $430, representing a 17% increase from its current price.
• Another analyst highlighted that BCH is forming a symmetrical triangle pattern, which is often seen as a bullish signal when the breakout occurs upward. If this pattern holds, the analyst anticipates a 30-40% price surge from current levels.
• Javon Marks, a long-term analyst, has set an even more ambitious target for BCH, predicting that the price could soar by over 900%, reaching $3,745.

Strong Buying Pressure

Looking at the 1-day price chart, BCH has decisively broken above its upper Bollinger Band, a sign of strong buying pressure. Additionally, the Moving Average Convergence Divergence (MACD) indicator has formed a bullish crossover, suggesting that upward momentum could accelerate in the near term.

Conclusion

All these technical indicators point to a potentially strong continuation of the bullish trend for Bitcoin Cash. With growing community sentiment, increased investor activity, and bullish chart patterns, BCH appears to be poised for further gains in the short term. However, the long-term prospects also look promising, with analysts predicting significant upside potential in the coming months.