Bitcoin Cash (BCH) has experienced a significant upward movement, climbing from $455 to $730, representing a gain of over 60% in less than three days. This surge occurred while Bitcoin (BTC) saw a decline of nearly 30%, and many other cryptocurrencies also experienced substantial losses.
Market observers have noted the unusual nature of BCH's rally in the current market climate, characterized by low sentiment and expectations of further downturns among traders. Despite the prevailing bearish trend, BCH defied expectations, demonstrating a sharp upward trajectory and successfully breaking through the critical resistance level of $621. This breakthrough led to an increase in trading volume and further price acceleration.
Key Resistance Broken During High Volume Move
The $621 mark had previously acted as a significant resistance zone for BCH in recent weeks. Upon surpassing this level, BCH exhibited consistent upward momentum. The breakout was accompanied by robust buying interest, and the daily chart now clearly indicates an established upward trend.
A market analysis shared by the account @TheTriggerTrade highlighted the importance of this level, stating, "The main level to watch is $621. If BCH breaks above it, things could move quickly." The subsequent price action, with BCH rapidly approaching $730 after crossing $621, aligns precisely with this prediction.
Analysts are also drawing parallels between BCH's current price structure and that of Zcash (ZEC), which previously underwent similar sideways consolidation before experiencing a sharp breakout. Market commentary from MR IRRELEVANT suggests that BCH may be poised for more significant gains, with potential target levels identified at $684, $768, and possibly as high as $1166.
Technical Structure and Future Levels
Analysis of both daily and weekly charts for BCH reveals a pattern of higher lows being formed, indicating an exit from its consolidation phase. The current technical setup suggests a growing bullish momentum, with traders closely observing the subsequent price levels, particularly around the $768 mark.
While short-term price retracements are a possibility, the overall technical structure of BCH is expected to remain intact as long as the price stays above the $621 level. Should the broader cryptocurrency market stabilize, BCH could potentially continue to lead in terms of performance gains.
The rapid rally from $455 to $730 has taken many by surprise, especially given that it occurred during a period of widespread market correction. Traders are now meticulously monitoring the chart to assess whether BCH can sustain its current upward momentum.