Bitcoin Cash (BCH/USD) reclaims $110 support. A reason to be optimistic about further gains?
Wednesday’s relief rally among most cryptocurrencies underlined investors’ confidence was crawling back. Crypto tokens, such as Bitcoin Cash (BCH/USD), had lost key important levels post the collapse of the FTX exchange. However, the latest bullish rally has helped the token of the Bitcoin fork claim an important level at $110. The cryptocurrency traded at a high of $119 before cooling off slightly. At press time, BCH was trading at $115, above the key support level.
The Wednesday gains are believed to be fueled by investors’ expectations about the Federal Reserve’s shift in policy stance. MacroMicro data shows that interest rates may rise slower than previously anticipated. The positive expectations have slightly lifted crypto and stock markets alike, which have shown a positive correlation. Consequently, investors could have slowed their shorts, although this doesn’t tell about the buy side.
Nonetheless, the latest gains should bring optimism that investors are still betting on digital assets. The recovery of BCH above $110 should, therefore, raise hopes that further gains are likely. But technical pointers tell us that we can’t confirm this yet.
BCH price analysis and outlook as momentum turn bullish
BCH Chart by TradingView
Looking at the MACD indicator, a bullish crossover has occurred, although we are still below the neutral zone. Momentum has slightly improved.
The RSI indicator has been recovering for a while now and remains above the midpoint. There are no overbought conditions, suggesting a potential further upside.
Should you buy BCH now?
Buying BCH now could be too early. We need to confirm a breakout by observing the close of the daily candlestick. A slight correction is already underway. The close of the daily candlestick below $110 would invalidate a bullish view.
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