Bitcoin Cash up 12% in 24 hours, analysts expect the rally to continue

BCH was the leading gainer in the market, surging over 12% on October 15, and analysts were expecting further gains, pointing to various bullish patterns emerging on the BCH chart.

Bitcoin Cash (BCH) is up 12.9% in the last 24 hours and was changing hands at $368 at the time of writing. According to Crypto.news data, the daily transaction volume of the crypto asset was around $7.26 billion.

Created in 2017 as a hard fork of Bitcoin to address scalability challenges, Bitcoin Cash has historically followed in the footsteps of its predecessor. Periods of intense interest in Bitcoin often spill over into BCH, a phenomenon known as the “Bitcoin effect.”

Many market participants see Bitcoin Cash as a cheaper alternative to Bitcoin, offering access to a cryptocurrency tied to the original vision of a decentralized peer-to-peer electronic cash system.

This rally coincided with changing US political dynamics; Poll trends tilted toward Republicans who are seen as more open to cryptocurrency regulations, increasing positive sentiment towards Bitcoin Cash and driving a $750 million increase in market value in the past 24 hours.

Technical data points to further gains

Data from CoinGlass shows that open interest in BCH futures has increased over the past 7 days, from $180 million on October 9 to $236.8 million at press time. The increase in open interest indicates increased investor activity and capital flows into Bitcoin Cash futures, indicating increased speculative interest in the asset.

Community sentiment on BCH was bullish, with 98% of 23,017 traders on CoinMarketCap expecting short-term price increases. Similarly, sentiment on X has also turned positive, with many analysts and traders predicting strong bullish momentum for the altcoin.

Pseudo-anonymous analyst Dom noted in his X post on October 15 that BCH price action looks promising, breaking the falling wedge formation, a popular indicator for a bullish trend reversal. Following the break above $350, he predicted that BCH is likely to rise towards $430, 17% above the cryptocurrency’s current price.

BCH 1-day price chart | Source: X/Dom

Another analyst emphasized that BCH is preparing for a strong breakout from the symmetrical triangle formation. Traders view this pattern as a bullish indicator if the breakout occurs to the upside, as it often signals that the prevailing trend (here, an uptrend) will likely continue. Based on this, the analyst expects a potential price increase of 30-40% from current levels.

Meanwhile, analyst Javon Marks has set a further upside long-term target for BCH, predicting that its price will rise over 900% to $3,745.

On the 1-day price chart, BCH has broken decisively above the upper Bollinger Band, indicating a strong increase in buying pressure. Simultaneously, the Moving Average Convergence Divergence formed a bullish crossover and signaled the possibility of upward momentum accelerating.

BCH price, Bollinger Bands and MACD CHART — October 15 | Source: crypto.news

These indicators point to the potential for further gains, indicating that the uptrend may continue to strengthen in the short term.