Bitcoin Cash is showing the biggest rise in the cryptocurrency market today. This altcoin has risen 4% in the past 24 hours, reaching an eight-month high of $522.40 at the time of reporting.
Technical indicators are sending strong signals, suggesting that Bitcoin Cash's price will likely continue its upward trend in the short term.
Bitcoin Cash Leads the Bullish Market
BCH's BBTrend indicator shows that the upward momentum is strengthening, recording 9.4 at the time of writing. This suggests the possibility of continued price increases in the short term.
The green histogram bars of BBTrend on the daily chart have been steadily increasing over the past few days, clearly showing increased investor demand and buying pressure for BCH.
BBTrend measures the strength and direction of the trend based on the expansion and contraction of Bollinger Bands. When the indicator prints larger green histogram bars in consecutive sessions, it suggests that the bullish trend is strengthening.
In the case of BCH, this setup indicates that buyers are gaining control, and volatility is expanding in the upward trend direction, suggesting a high likelihood of continued price increases.
Moreover, the coin's Smart Money Index (SMI) supports this bullish outlook. At the time of writing, this indicator is at 85.1, having risen more than 220% since June 5th.
The asset's SMI tracks the activities of experienced or institutional investors by analyzing market behavior during the first and last times of trading. When the indicator falls, it indicates selling activity or decreased confidence among these investors, suggesting bearish sentiment or expectations of price decline.
Conversely, a rising indicator shows that major investors are increasing their buying activities, meaning increasing confidence in the asset. Therefore, the steady rise of BCH's SMI over the past few weeks reflects strong bullish pressure supporting the current rally.
BCH Aims for New Highs with Increasing Buying Pressure
As demand strengthens and buying pressure increases, BCH could rise further in the coming days. If accumulation continues, the coin could extend its rally to $556.40.
On the other hand, if demand stops and profit-taking begins, the coin's price could drop sharply to $490.80.
Falling below this support line could trigger further decline to $444.70.
