Bitcoin Cash (BCH) rose to $228 on Tuesday, an impressive 21% gain as the market reacted to news of Grayscale’s court victory against the US Securities and Exchange Commission (SEC). Santiment shared the chart below, showing that BCH was the biggest beneficiary of the crypto spike.
📊 After the news of #Grayscale‘s victory over the #SEC quickly lifted #crypto markets, the biggest notable beneficiary actually has turned out to be #BitcoinCash, due to its increased exposure. This phenomenon was similar to what we saw in mid-June when the #ETF news was first pic.twitter.com/HzEEEqZqIt
— Santiment (@santimentfeed) August 29, 2023
However, Bitcoin Cash is now trading 5% lower, as can be seen in the chart below. Profit taking deals appear to be taking place as buyers were rejected at the critical horizontal level that also marked the start of downward moves in mid-August. On the daily chart, the price is above the 100 SMA which provides support near $198. The daily RSI is still above the 50 mark, though it’s beginning to slant, suggesting possible selling pressure. Key price levels to watch are $183 and $252.
Bitcoin Cash price chart. Source: TradingView
In June, Bitcoin Cash jumped as Wall Street companies looked to embrace crypto with a series of ETF filings. Positive sentiment fueled by BlackRock pushed Bitcoin to above $31k, while Bitcoin Cash rose to above $329, partly driven by the unveiling of Fidelity-backed crypto exchange EDX Markets. BCH was one of four crypto assets EDX Markets supported.
Overall, Bitcoin Cash still has the potential for further gains, as long as buyers can overcome the resistance levels.
