Bitcoin Cash [BCH] is among the many high gainers within the final seven days after going via one other sturdy bullish section. An attention-grabbing end result contemplating that it confirmed indicators of a possible bearish retracement after its mid-month rally.
It delivered a considerable pullback on 25 July, setting priority for a bearish week nevertheless it has turned out to be a bear lure.
BCH bulls managed to push above the $150 worth throughout 28 July’s buying and selling session after a earlier fake bearish try. This is a crucial worth stage as a result of it was the cryptocurrency’s lowest worth stage in May. BCH has not solely managed to reclaim this stage but in addition push previous it to its $158 press time worth.
Its worth chart reveals a breakout from its descending wedge sample. However, its potential to carry on above the $150 worth stage is perhaps put to the check particularly now that the worth is already overbought as indicated by the Relative Strength Index (RSI).
Is there incoming promoting stress?
Bitcoin Cash is up roughly 36% within the final three days and such beneficial properties are sure to start out attracting some promoting stress. This is as a result of some buyers in search of short-term earnings could decide to promote contemplating the uncertainty behind the recession.
BCH’s on-chain metrics could present some readability as regards to the potential for extra upside or a possible reversal.
The cryptocurrency’s stock-to-flow ratio is presently at its highest month-to-month stage courtesy of the most recent upside. This means BCH is now scarcer on exchanges than it has been within the final 4 weeks.
Meanwhile, the variety of energetic addresses has elevated particularly within the final 24 hours.
While the above metrics could appear like they help extra upside, whale transaction counts could present a distinct image. The variety of whale transactions peaked at 26 on 28 July, however they established a brand new excessive at 33 within the final 24 hours.
However, BCH solely managed a slight upside on 29 July in comparison with the sturdy rally on 28 July.
This statement means that some, if not a lot of the whale exercise within the final 24 hours at press time might need been profit-taking. It would clarify why the rally was restricted in comparison with the day gone by.
Additionally, BCH is anticipated to expertise important promoting stress particularly now that it’s in overbought territory. However, buyers ought to observe that the market has been in restoration mode and will proceed to rally.
This signifies that any potential retracement will doubtlessly be restricted if the market maintains its presently bullish trajectory.