Bitcoin cash price held steady on Friday as investors continued buying the dip. BCH token rose to a high of $420, its highest level since February 1. It has jumped by almost 50% from its lowest level this month. Let’s explore why Bitcoin Cash is rising and the next level to watch.
Why Bitcoin Cash price is soaring
The BCH price is soaring because of the rising optimism that the Securities and Exchange Commission (SEC) will approve a spot BCH ETF.
While no BCH ETF has been filed, there is a likelihood that one or more companies will do so for two reasons.
First, there are signs that a spot BCH ETF would have demand from investors. A good example of this is the fact that the Grayscale Bitcoin Cash Trust has over $154 million in assets, a big amount for a fund that charges 2.5% annually.
Second, a BCH ETF is likely to be approved because of what the coin is. Bitcoin Cash is similar to Bitcoin because it is a proof-of-work coin with a maximum supply of 21 million. 19.81 million of these coins have been mined already, meaning that miners are only looking for about 1.17 million coins.
The SEC has already approved several spot Bitcoin ETFs, which have accumulated over $40 billion in inflows. There are also odds that the agency will approve a spot LTC ETF, which will raise the possibility of it doing the same for a spot BCH fund.
The main reason why the SEC has rejected spot crypto ETF applications in the past was the view that they were securities. This should not be a concern for BCH and other PoW coins since it has already approved Bitcoin and Ethereum ones.
Read more: As Litecoin Price Soars, is the Forgotten Bitcoin Cash Better?
Bitcoin Cash price analysis
The daily chart shows that the BCH price bottomed at $272.82 this month and then bounced back. This price was a notable one since it failed to move below it in February this year and August 2024. As such, that price is part of a double-bottom pattern whose neckline is at $640, the highest point on December 6.
Bitcoin Cash price has moved above the 50-day and 25-day Exponential Moving Averages (EMA), a sign that bulls are gaining control for now. It has also moved above the strong, pivot, reverse level of the Murrey Math Lines at $375.
Oscillators like the Relative Strength Index (RSI) and the MACD indicators have continued rising. Therefore, Bitcoin Cash price will likely keep rising. The next point to watch being at $500, which coincides with the major S&R level of the Murrey Math Lines. A drop below the support at $300 will invalidate the bullish view.
