Bitcoin Cash [BCH] has turned out to be among the best cryptocurrencies that one may have purchased in the course of the weekend.
Last week’s crash triggered a sell-off throughout the crypto spectrum. Most of the highest cryptocurrencies have struggled to recuperate as a consequence of fears of extra draw back.
However, BCH has already bounced again by greater than 20%.
The token climbed as excessive as $139 within the final 24 hours at press time. This peak represents a roughly 23% upside from its weekly low of $111.
Bitcoin Cash’s strong bounce again from final week’s lows means that it attracted heavy accumulation.
Whale exercise metrics confirmed that there was certainly a major wave of shopping for exercise.
The whale transaction rely metrics registered a rise in whale exercise, particularly from 22 August.
This was across the identical time that the value embarked on extra upside after the prolonged draw back on 19 August.
The elevated whale exercise was additionally backed by a considerable enhance within the variety of day by day lively addresses. Almost as if retail consumers have been responding to the whale accumulation.
The metrics collectively affirm that BCH managed to command wholesome demand that culminated in a noteworthy rally.
There was sufficient shopping for quantity to set off a bullish cascade as buyers sought the following greatest alternative after final week’s crash.
Moreover, the 30-day MVRV ratio confirmed that there was robust accumulation after 19 August.
As a outcome, it registered an uptick, confirming notable profitability for many who purchased the latest backside.
Possible causes for BCH’s rally
Just final week, Canadian laws enforced a $30k CAD purchase ceiling on non-ETH cryptocurrencies. Bitcoin Cash was among the many 4 cryptocurrencies exempted from the rule.
I stay in Canada and might now solely purchase $30k CAD in non $ETH crypto. But hey I should buy Bitcoin Cash? (*19*)
— joshuad.eth (🍄,🍄) (@mynt_josh) August 18, 2022
The regulatory requirement could have shifted demand in favor of BCH. However, this is not essentially the case contemplating that Litecoin, Bitcoin, and ETH didn’t get pleasure from the same upside.
Well, BCH’s worth motion within the final two months may present a clearer reply.
Bitcoin Cash hit its 2022 backside in the direction of mid-June, not like a lot of the high cryptocurrencies which bottomed out in mid-June.
Its worth motion since then seems to be forming an ascending worth channel, as has been the case with most of its counterparts within the final two months.
If this seems to be the case, then the most recent bounce again is the second help retest. Hence, the development is nonetheless robust. If that is the case, then we should always see a resistance retest close to the $169 worth stage.