Bitcoin Cash blitzes back to March highs- Can the bulls hold on?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structures on H4 and daily were both bullish.
- The surge occurred on enormous volume as well, pointing toward demand.
On 20 June, Tuesday, Bitcoin Cash began posting strong gains on the price chart. It rose past the high of 17 June at $109.5. Already in a lower timeframe bullish structure, the 30.3% move higher in the next 12 hours was enormous and unexpected.
How much are 1,10,100 BCHs worth today?
At the time of writing, the bullish market structure of BCH remained and its daily structure pointed in bullish favor as well. News of Deutsche Bank applying for a regulatory license to provide crypto custody services could have impacted the market.
The high-volume surge showed strong bullish conviction- can the buyers maintain the trend?
Across the market, most altcoins were in a downtrend. Bitcoin Cash had been in one as well, both on the 4-hour as well as the daily timeframe. But over the past ten days, its structure began to shift on the H4 chart.
BCH formed a lower high at $104.1 but followed it up with a move to $106.8. This meant the drop to $100.5 was a higher low, and the H4 structure was bullish. Yet the daily structure was bearish, with the recent lower high at $117.3. The $140 level was also a key resistance from mid-March.
The recent surge broke this level as well. Fibonacci retracement levels plotted based on this move showed the 50% retracement level at $123.3, although a complete retracement of the rally cannot be discounted either. However, these are the levels aggressive bulls can look for a positive reaction from prices before buying BCH.
Negative funding rate hinted at bearish speculators
The Open Interest rose by close to $50 million as Bitcoin Cash rocketed higher to $140. This showed speculators jumped on the strongly trending asset in the lower timeframes. Yet, even as the prices burst higher, the funding rate plummeted.
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The high negative funding rate meant the majority of the market was positioned short. Coinglass data showed $2.07 million worth of positions on Bitcoin Cash were liquidated in the past 24 hours, with 70% of them being short.