Bitcoin Cash leads the market today, emerging as the top gainer with a 3% increase in the past 24 hours. This marks a continuation of its multi-week rally, supported by growing investor interest.
With the altcoin currently trading above key resistance levels, Bitcoin Cash’s price is poised to extend its gains in the short term.
Bitcoin Cash Rides BTC Momentum
BCH’s rally over the past day coincides with BTC’s latest attempt to reclaim its all-time high of $111,968. On Monday, the king coin briefly traded above $108,000, reigniting bullish sentiment across the broader crypto market and lifting altcoins like BCH.
As of this writing, BCH trades at $476.28. The past 24-hour rally marks a continuation of its multi-week surge, highlighting how long the bulls have remained firmly in control of the market. Readings from the BCH/USD one-day chart show that the altcoin has been in a steady uptrend since April 7, consistently posting higher highs and higher lows, a textbook sign of sustained bullish momentum.
Currently, the altcoin trades above the Leading Spans A and B of its Ichimoku Cloud, reflecting the bullish sentiment among BCH holders. These lines form dynamic support levels below BCH’s price at $435.65 and $413.30, respectively.
The Ichimoku Cloud tracks the momentum of an asset’s market trends and identifies potential support/resistance levels. When an asset trades above it, the price is in a strong bullish trend. The area above the Cloud is a bullish zone, indicating that market sentiment toward BCH is positive.
Furthermore, BCH’s positive funding rate supports this bullish outlook. As of this writing, it is at 0.0006%, highlighting the preference for long positions among its futures market participants.
The funding rate is a periodic payment between long and short traders in perpetual futures contracts. It keeps the contract price aligned with the spot price. When its value is positive, long traders pay short traders, indicating that bullish sentiment dominates the market.
BCH Eyes $490 Breakout
At its current price, the altcoin trades just below a key resistance level at $490.89. If demand rockets, BCH could break through this long-standing barrier and flip it into a support floor. A successful breakout above this level could propel BCH toward $556.60, a price it last touched in December.
However, if profit-taking kicks in, this bullish outlook would be invalidated. In that scenario, the altcoin could retreat to $444.74. If that level fails to hold, Bitcoin Cash’s price may fall further to retest the dynamic support of the Ichimoku Cloud’s Leading Span A at $435.65.
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