Bitcoin cash scaled new heights today and looks solidly bid against its rival bitcoin (BTC).
As per CoinMarketCap, the world’s third-largest cryptocurrency by market capitalization toppled its previous record high of $2,477.65 (Nov. 12 high) and rose to a new record of $2,501.29 at 09:44 UTC today. Bitcoin cash (BCH) was last seen trading at $2,350 levels, meaning the 21 percent rally seen in the last 24 hours has pushed the gains since its launch to 316 percent.
Meanwhile, week-on-week, BCH has appreciated 43 percent.
The stellar rally is a part of the broad-based strength witnessed in the alternative currencies since last Tuesday. With bitcoin (large cap) showing signs of fatigue near the $20,000 mark, the rotation to small caps seems to have gathered pace. This is evident from the spike in trading volumes on exchanges offering BCH/BTC pairs.
Also, the investor community may have bought BCH on speculation that integration with payment processor BitPay would open the doors to more widespread adoption (and boost its utility as a payment method). The price chart analysis says the rally in BCH is here to say.
Bitcoin Cash chart
The above chart (prices as per Bitfinex) shows:
- BCH has failed to hold above the 261.8 percent Fibonacci extension level of $2,327.11.
- The decline from $2,425 (intra-day high) to $2,260 also indicates the first attempt to break above the rising channel hurdle ($2,327.11) has failed.
- The 5-day MA and 10-day MA are curled up in favor of the bulls.
- The relative strength index (RSI) shows overbought conditions, but is well short of the highs seen in November. Thus, there is enough room for BCH to extend the rally.
- The area around the upward sloping 10-day MA level of $1,750 is likely to act as a strong support in the short-term.
- A close (as per UTC) above $2,327.11 (261.8 percent Fibonacci extension and rising channel hurdle) would open up upside towards $3,000.
That said, the comments on social media show the investor community feels the rally in BCH could fall apart if bitcoin suffers a major setback. While that could be true, the BCH/BTC chart indicates bitcoin cash could still score gains against bitcoin.
The above chart shows:
- A higher low pattern (BTC 0.068 on Dec. 8 and BTC 0.09 on Dec. 16).
- The relative strength index (RSI) is above 50.00 (in the bullish territory), indicates the scope for further gains in BCH/BTC pair.
- The 5-day MA and 10-day MA favor the bulls.