has outperformed the market against BTC today, becoming the best gainer among the top 20 cryptocurrencies with a 9.75% rise.
Looking at the 2hr chart above we can see that BCH exploded off the bottom, after consolidating around the 9,000 Sats support.
During the opening bull run we can see the price action broke clear above the 0.786 fibonacci level before correcting back to it, after BCH became overbought on the RSI indicator.
MACD is bearishly diverging back down towards the signal line which tells us the bulls are starting to tire. Going off the fibonacci numbers, we would like to see a second rally of support pick back up off the 0.786 level and take the asset beyond the 0.5 fib level at 17,000 Sats, which sits just above the strong resistance at 16,400 Sats, where we’re likely to see some early selling pressure.
From there we should expect a correction back to the 0.618 fib level before the 3rd wave of support begins to gather again for the next push.
In the current uptrend the Ichimoku indicator is still favouring a bullish continuation with the Tenken-Sen pulling away further from the Kijun-Sen line and the projected kumo cloud rising well alongside the price action; with a Span A support holding at 12,400 Sats.
Looking at key resistance levels on the 4hr charts, we can see early price targets at 13,500 Sats (50% return off the 9,000 Sats support) and 15,250 Sats (69.44% return). Depending on market sentiment over the next week we could see further price targets above at 16,600 Sats (84.44% return) and 20,000 Sats which would yield a whopping 122.22% return!
At the present time, trading volume is coming from a mix of exchanges against several pairings which tells us that support from the overall crypto community is returning to Cash and that the recent interest is not merely the result of exclusive trading from a particular exchange or country.
In the past 7 days BTC market dominance has also dipped below 40%, as other assets like BCH start to regain popularity again after a painfully bearish Q1 this year.
Will we see a revival of the rivalry between BCH and it’s older brother, Bitcoin again? Or will Bitcoin purists take back the market and push BTC back above $10,000 in the coming weeks? Stay tuned!
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