Now, in the entire cryptocurrency market, only one coin has been growing for 3 weeks. Moreover, the growth of just one asset out of a thousand alts is an indicator of an unhealthy rally.
Let's figure out why $BCH is growing and find out why there is no need to go shopping for this coin.
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📚 Fundamentally
The BCH coin has been on the market for many years and in the initial stages of its existence, the coin was promoted by Roger Ver, the man who was one of the first to promote Bitcoin to the masses. As a result, this person apparently realized that it was possible to make a huge fortune out of nothing and he carried out a hard fork of the Bitcoin network. This is how Bitcoin Cash was born.
This is a very long story and from it it is important to know that in the end the Bitcoin Cash project completely collapsed. The coin was divided into several more chains, and Roger Ver himself left this project a long time ago.
🤔 So, what is the fundamental reason for growth?
Bitcoin Cash has been one of the weakest assets for the last couple of years, which completely lost the entire development team. The attractiveness for miners also faded before our eyes, as the coin lost more than -94% from its peaks during this bear market. In addition, the project is inferior to all new projects, not to mention Bitcoin itself.
In fact, the BCH coin experienced a low base effect, when only 1 positive news was enough for impulse growth. The news was the following: the launch of the EDX Markets exchange for institutional investors. There are only 4 assets traded on this exchange: $BTC $LTC and BCH. Moreover, the news is very weak, but it is the only positive news in recent years.
The coin has been falling steadily down since 2021, which means it has accumulated a huge amount of shorts. It was on this news that the cascade of liquidations began
📊 Technical analysis
The coin fell within the medium-term downward channel. As a result, the coin fell to the last support level of $97. This support level was a reversal for the price in 2018. But now the situation is different from those times. After a whole year of consolidation sideways near this support, the price flew up to collect short liquidity. This can be clearly seen from the huge volume. Imagine how many shorts were open with stops above this side.
Now the coin has entered an area of increased resistance, which is confirmed by the profile volume and resistance levels. Indicators are already heavily overbought, and volumes are very low compared to previous years.
🤷♂️ The coin can still grow a little to $270-320. But overall, we expect a few weeks of consolidation in the current range, with the big players selling all their inventory to the hamsters of mere mortals who are currently experiencing FOMO. Next we will fly down below the historical level. Therefore, whoever has stocks of this hat, sell while you can.
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