Since Monday Bitcoin Cash (BCH) has gained 13%, making it the market's top gainer. Analysts anticipate further increases, citing several positive signals on the BCH chart.
How Could US Politics Affect The BCH Price?
Bitcoin Cash was developed as a hard fork of the original cryptocurrency to solve scalability issues in 2017. The "Bitcoin effect" refers to the tendency for periods of high interest in Bitcoin to extend into BCH. Bitcoin Cash, which offers accessibility to a cryptocurrency linked to the basic idea of a decentralized collaborative electronic cash system, is seen by several market players as a less expensive option to Bitcoin.
Since Republicans are perceived as more receptive to regulating cryptocurrencies, the surge coincided with a change in the political landscape in the United States. This increased optimism in Bitcoin Cash caused its market capitalization to rise by $750 million on the last day.
Bitcoin Cash On-chain Metrics Analysis
On-chain stats further bolster BCH's optimistic outlook. According to the on-chain monitoring company Coinglass, BCH's Long/Short percentage was 1.20, showing significant bullish sentiment.
Furthermore, the futures open interest increased by 30% within the past day. This spike implies that traders may place bets on longer positions and strongly believe in BCH.
Investors and traders frequently combine increasing Open Interest with a Long/Short Ratio greater than 1 when creating long positions.
This implies that bulls are in control of the asset and have the potential to start a big upward advance. At the time of writing, 45.5% of the top traders had short positions, and 54.5% had long holdings.
Bulls are currently excessively leveraged at $361, the main lower-side liquidation level. If sentiment changes and the price falls beneath this level, the long positions totaling $4.23 million will be liquidated.
BCH Price Prediction Technical Analysis
In the daily chart of BCH price, the current price aimed higher above the 100 day Simple Moving Average. Also, bullish range breakout is visible, signaling a valid rebound from the near-term bottom.
Looking at the volume structure, a bullish daily candle is visible above the 354.62 high volume line, supported by the sell-side liquidity sweep from the 288.18 level.
In this context, a bullish continuation is highly possible as the latest Bitcoin Cash price shows a buying pressure from the bullish inside bar formation. In that case, the upward pressure might extend and test the resistance of 446.18 level.
On the other hand, an immediate rebound is possible below the 100 day SMA, which might find the 307.72 level as a primary support.
