Bitcoin Cash has emerged as one of the most lucrative digital token anyone could have purchased over the weekend. Last week’s downturn saw the overall crypto market on a sell-off. Most leading cryptos have struggled to recoup amidst fear of further downsides.
Nevertheless, Bitcoin Cash has already rebounded by over 20%. The alternative token surged towards the $139 high within the previous 24 hours. That translated to a 23% surge from the $111 weekly low. BCH’s massive rebound from the previous week’s low confirmed massive accumulation for the altcoin. Meantime, whale activity counts recorded upticks since August 22.
That’s when the price kick-started upside actions, following stretched declines on August 19. Also, a significant surge in daily active wallets backed the amplified whale activity. Retail buyers seem to react to the whale investor accumulations. The metrics revealed that Bitcoin Cash might experience solid demand that triggered a notable surge.
The assets saw enough buying strength to trigger massive bullishness as market players hunted for opportunities following last week’s slump. Furthermore, the monthly MVRV ratio affirmed the presence of enormous accumulation after August 19. Consequently, it recorded an upsurge, confirming substantial profitability for investors that purchased the latest bottom.
Potential Reasons Behind BCH’s Surge
Canadian regulators imposed a CAD 30,000 purchase ceiling on non-Ethereum digital coins. Bitcoin Cash was one of the four exemptions. The regulations could have switched demand in BCH’s favor. Nevertheless, that isn’t necessarily the case, as Bitcoin, Ethereum and Litecoin didn’t see similar surges.
Meantime, Bitcoin Cash’s price trends within the past two months could offer a clearer picture. The altcoin touched its 2022 low toward mid-June, unlike most large-cap assets, which bottomed in mid-June. Its price movement (since then) seems to be printing an ascending channel. And that was the narrative with its peers within the previous two months.
If that’s the case, the recent rebound means a 2nd support retest. Thus, the trend remains strong. That might push BCH to retest a resistance mark around the $169 value area.
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