Bitcoin Cash analysis: BCH/USD goes to the moon fuelled by Gemini listing and Bitmain's IPO
- BCH/USD jumps over 20% in a matter of hours and keeps the gains.
- Gemini listing and Bitman's IPO news might be behind the movement.
Bitcoin Cash (BCH) experienced a sharp price increase late on Wednesday, jumping to $553 in a matter of hours. Despite some retracement, the coin is still trading with 21% gains day-on-day, at $530 by press time. Being the 4th largest coin by market value, BCH has a market cap $9.2B and an average daily trading volume $1B which is twice as large as on September 25. The coin experienced a sharp growth of volumes and volatility amid the strong upside momentum late on Wednesday.
Considerable volatility implies that there are a lot of buyers and sellers who try to pull the price their way. While there are no signs of increased selling pressure, BCH is vulnerable to the downside correction from an overbought territory.
Bitcoin Cash technical picture
From the technical point of view, watch out for psychological $500 handle, strengthened by 200SMA (4-hour chart) and the upper line of the broken channel. If BCH bears manage to crack it, the sell-off will gain traction with the next targets at $466 and $455 (SMA50 and SMA100 respectively).
On the upside, BCH/USD might return to Wednesday's high at $553 followed by $564 (50% Fibo retracement for the downside movement from September 2 high).
What's behind the move?
The New-York based cryptocurrency exchange Gemini is about to add BCH to the list of tradable digital instruments. The company, owned by Winklevoss twins announced that it received regulatory approval for Bitcoin Cash listing.
"We’ve already gotten regulatory approval to list BCH; however, no launch date has been announced. We will be sure to let everyone know once it’s available for trading,” Gemini wrote in a Twitter post.
While listing on a large platform is always a suitable catalyst for growth, some experts believe, that the main reason behind BCH stellar rise is related to Bitmain's IPO.
"This spike was definitely caused by Bitmain's IPO filing," eToro's senior market analyst Mati Greenspan explained.
BCH/USD, 4-hour chart
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Author
Tanya Abrosimova
Independent Analyst
