- Bitcoin Cash’s value hit its highest since August 2022.
- Volume surged as BCH may attain overvalued ranges quickly.
Bitcoin Cash [BCH] surged to its highest worth since August 2022, after it broke the $150 area on 20 February. According to CoinMarketCap, the cryptocurrency recorded probably the most beneficial properties on the mentioned date because it raced to the peak. But at press time, the momentum appears to have decreased as BCH traded at $147. 53.
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BCH greens susceptible to…
There have been instances the place a slide like this was solely a short-term downside. So, is that this one in all such instances? Based on the day by day chart, the Relative Strength Index (RSI) was greater than regular at 63.74. The indicator is a momentum oscillator that gauges modifications of value actions and pace.
Now, the BCH RSI worth indicated that the cryptocurrency had a excessive shopping for energy. But within the case the place the worth hits 70, then it implies that it has hit an overbought zone. Hence, there may very well be a big value reversal in that space.
As per the Moving Average Convergence Divergence (MACD), the Bitcoin Cash momentum was not essentially bullish. This was as a result of the blue dynamic line was solely positioned above the orange barely. This situation meant that patrons and sellers had been in a heated contest for management. But the greens had an edge, nonetheless.
Furthermore, the Directional Movement Index (DMI) urged consolidation within the quick time period, as there was no assist for a steady uptick.
Source: TradingView
As of this writing, the -DMI (pink) was 8.93. The reverse quantity, the +DMI (inexperienced), was notably greater at 24.73. But the Average Directional Index (ADX), which alerts weak or sturdy asset course, had trended decrease. This means the greens could also be interrupted earlier than it may BCH $150 once more.
The driving forces behind the rally may…
Concerning the on-chain standing, Bitcoin Cash’s sentiment has been one of many driving forces behind the latest rally, in keeping with Santiment. At the time of writing, the optimistic sentiment was 10.29. On the opposite hand, adverse sentiment was 6.71.
Nonetheless, the minimal distinction between each metrics may imply that the optimistic notion in direction of the cryptocurrency had declined.
Source: Santiment
Realistic or not, right here’s BCH’s market cap in BTC’s phrases
Also, there have been many transactions that handed by the Bitcoin Cash community recently, as displayed by the amount. At press time, BCH’s quantity was 346.09 million.
The Market Value to Realized Value (MVRV) ratio was 10.26%. The metric describes the speed at which holders have made earnings and the way worthwhile an asset is. Such a excessive ratio implied that the rally had produced good beneficial properties for holders, however it may additionally infer an overvalued state within the quick time period.
Source: Santiment
