29 July 2024
Altcoins offer investors and traders an alternative to big cryptocurrencies within the market. Since the start of this week, these major cryptocurrencies like Bitcoin and Ethereum have continued to rocket upwards, pulling the majority of the market with them. Bitcoin Cash, a direct fork of Bitcoin, is seeing success after today’s 3% increase in total market cap.
According to CoinGecko, the coin is up nearly 15%, making it the lead gainer of today’s market environment.
Superb Market Conditions Spur Trader Interest
The tie between the traditional and crypto markets cannot be understated. Major market indices like the Dow Jones and the S&P 500 show a high correlation with major crypto assets like Bitcoin. This positive correlation thus gives the altcoin market a hand in situations like this one.
Investors, traders, and economists are eyeing several central bank meetings of G7 nations like Japan, the United States, and the United Kingdom.
The most notable of these is the highly likely US Federal Reserve September rate cut hinted at by US Fed’s Chair James Powell. This means that the Fed, and other central banks like it, are observing that the economy is going back to being healthy, thus not requiring measures like increasing interest rates.
Experienced and newbies alike also dove into the crypto derivatives market. According to CoinGlass, BCH’s rocket upward contributed to more long-term investors entering the scene, introducing newer contracts to the market. Online analysts are also bullish on BCH continuing its strong run until next month.
$BCH Descending Channel Breaking out in 12H Timeframe
Expecting Bullish Wave#BCH #BCHUSDT #Crypto pic.twitter.com/O7PBegZ2px
— ZAYK Charts (@ZAYKCharts) July 28, 2024
These positive metrics leave bulls more than enough ground to continue their upward rise. Along with the halving event BCH experienced last April, the coin has since become another crowd favorite for its near-consistent performance.
Bitcoin Cash: Will The Bullish Pace Continue?
The overall financial situation of the global market can be summarized in a phrase: Very optimistic. However, investors and traders in BCH should note that this bull run is a recovery attempt from months of bearishness.
Although the correlation between BTC and BCH is high, investors should still be cautious as this can also translate to BCH following Bitcoin downwards if it corrects to a more sustainable level.
And this might also be the case. The bulls, after nearly a month of continuous gains, will eventually be left exhausted. Once the bears take over the market, we might see the token stabilize in its current price range of around $450.
It will take another month of positive market conditions to continue this kind of movement. Investors and traders should then watch the broader economy and the upcoming Federal Open Market Committee decision as the majority of the financial world’s decision will hinge on this metric.
Featured image from Medium, chart from TradingView