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Bitcoin Cash is among the top winners with 24% weekly up
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BCH faces potential retracement at current levels
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Investors should consider a purchase over $120
Cryptocurrencies have recorded a significant recovery following an interest rate hike by the Federal Reserve. Fears of an impending recession have also fueled bullish sentiment. With crypto often seen as a hedge against inflation, some are reaping a lot. An example of such a token is Bitcoin Cash BCH/USD.
Bitcoin Cash is derived from Bitcoin with the promise of larger block size and faster transactions. Seen as a more efficient alternative to bitcoin, Bitcoin Cash delivers on its promise. The native token is up 8.29% in the past day, bringing its weekly gains to 24%. In comparison, Bitcoin has pumped a minuscule 4% in the past 24 hours and 2.44% in the past week.
Zooming out further, despite the closer correlation between Bitcoin and Bitcoin Cash, shows the latter a stronger recovery. Bitcoin Cash is up 53% while Bitcoin is up 16% in the past month. Of course, this takes into account a $450 billion market cap difference between the two tokens.
Nevertheless, Bitcoin Cash remains susceptible to the factors affecting the original blockchain. Both tokens are down 64% and 87% respectively from last year’s highs. Correlation aside, Bitcoin Cash shows some positive developments from the technical outlook.
BCH Stands For Retracement Amid Strong Bullish Momentum
Source: TradingView
BCH is in strong bullish momentum and is currently trading at $158. The MACD has crossed the signal line from bottom to top. If momentum continues, the focus will shift towards the $217 level, which is a small resistance. Furthermore, $281 is the other key level that investors should keep an eye on. On the other hand, BCH could be preparing for a retracement.
The RSI indicator is in the overbought zone, a level last seen in March. If this is the case, $120 will be the immediate fallback for Bitcoin Cash. If the level fails to hold, the token could move further towards $92.
closing thoughts
BCH is not a buy at the current level. The token can prepare for a short-term retracement. Investors should keep an eye on $120 as a possible entry point and take advantage of the next bull run.
