Bitcoin Cash price peeks 15%, liquidates millions in short positions amid Franklin Templeton ETF hype


  • Bitcoin Cash price skyrocketed 15% to record an intra-day high of $210.7 alongside Bitcoin’s 5% surge.
  • The ascension saw up to $4.31 million short positions liquidated, against $459,000 longs.
  • Santiment attributes the uptick in BTC and its BCH fork to ETF mania following latest Franklin Templeton announcement.

Bitcoin Cash (BCH) price skyrocketed on September 12, outperforming most altcoins in a striking move considering the current lull in the cryptocurrency market. BCH even outperformed Bitcoin (BTC) price, from which it is forked, with momentum indicators suggesting a continued uptrend. The rally comes on the back of the ongoing Bitcoin Spot Exchange-Traded Fund (ETF) applicant.

Also Read:  SEC Chair says staffs’ recommendation will be vital for Bitcoin Spot ETF approvals after Grayscale ruling

Bitcoin Cash joins BTC in a northbound move

Bitcoin Cash (BCH) price recorded a 15% surge to an intra-day high of $210.70. This was three times the gains Bitcoin (BTC) price made, rising 5% to reach the $26,500 range before they both pulled back.

BTC/USDT 1-day chart, BCH/USDT 1-day chart

The 15% rise in the price of Bitcoin Cash saw up to $4.31 million in short positions liquidated alongside only $459,000 in long positions.

BCH liquidations chart

According to behavior analytics platform Santiment, the uptick for BCH and BTC comes on the back of Franklin Templeton, the new entrant in the Bitcoin Spot ETF race, with up to $1.5 trillion in assets under management (AUM) to its belt.

Frankilin Templeton’s filing identifies Coinbase Trust Company as the custodian for the fund’s Bitcoin holdings. Similarly, Bank of New York Mellon has been identified as the custodian for the fund’s cash holdings. 

The Santiment report indicates that Bitcoin Cash is among the altcoins that have benefited the most from the previous announcements involving ETFs, rallying alongside Bitcoin price. For instance, when BTC rallied 7% following Grayscale’s recent victory on August 29, BCH soared around 20%.

Bitcoin Cash price prognosis if BTC shows strength

Bitcoin Cash price could continue its move north if Bitcoin price shows strength. The BTC fork enjoys robust downward support offered by the 200-day Exponential Moving Average (EMA) at $179.50.

The September 12 move saw BCH overcome the 100-day EMA hurdle at $198.6, although this is pending confirmation that would happen once the token records a decisive daily candlestick close above the 50-day EMA at $205.40, vindicating itself from the foothold of the downtrend line.

The Relative Strength Index (RSI) remains northbound, bolstered by numerous green bars of the Awesome Oscillator, which points to rising momentum. If sustained, Bitcoin Cash price could extend 30% above the descending trendline to tag the supply zone at around the $280.00 range, where selling pressure abounds, to likely correct from here.

BCH/USDT 1-day chart

Conversely, if traders begin their usual profit-taking to cash in on the Franklin Templeton-infused gains, Bitcoin Cash price could drop, potentially losing the support offered by the 200-day EMA at $179.50 to tag the psychological $160.00 level potentially. Such a move would indicate a 20% slump.

However, the support due to the 200-day EMA is critical, as it coincides with the last lower high recorded on August 18. Therefore, a decisive daily candlestick close below $179.50 could mark the beginning of a new downtrend. 

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

DOGE holders may sell if it rises above key accumulation zone

DOGE holders may sell if it rises above key accumulation zone

DOGE will reclaim a key level if it rises by 5%, and traders will likely sell as they break even. DOGE's social volume has reached its lowest level in the past year. DOGE has underperformed other top meme coins year-to-date.

More Dogecoin News

SEC vs. Coinbase: Coinbase attorney's arguments fail to convince judge

SEC vs. Coinbase: Coinbase attorney's arguments fail to convince judge

SEC vs. Coinbase hearing on Thursday addresses the exchange’s demand that Chair Gary Gensler should testify. Coinbase Attorney Kevin Schwartz’s arguments fail to convince Judge Katherine Polk Failla.

More Cryptocurrencies News

Ethereum on-chain activity reveals mixed signals amid declining inflation

Ethereum on-chain activity reveals mixed signals amid declining inflation

Ethereum could rally in Q3 following reduced US inflation and launch of spot ETH ETFs. Ethereum's on-chain activity shows mixed sentiment among investors. Bearish exhaustion candle could signify a downturn for ETH if SEC delays ETH ETF approval.

More Ethereum News

Biden's veto stands, banks unable to  provide custody services for crypto

Biden's veto stands, banks unable to  provide custody services for crypto

US House failed to muster a two-thirds vote to overturn President Biden's veto of Joint Resolution 109. Several Democrats failed to support a repeal of the President's veto despite the increasing role of the crypto industry in the upcoming election.

More Cryptocurrencies News

Bitcoin: BTC sinks under $55,000 as Mt Gox prepares payment to creditors

Bitcoin: BTC sinks under $55,000 as Mt Gox prepares payment to creditors

Bitcoin (BTC) price is having its worst week of the year, influenced by selling activity among BTC miners and heavy transfers of Bitcoins to exchanges by Mt Gox and the German Government. 

Read full analysis

BTC

ETH

XRP