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Bitcoin Cash (BCH) has surged to an 8-month high, trading at $522.40, driven by rising bullish momentum.
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The BBTrend and Smart Money Index show increasing buying pressure, signaling potential for continued BCH gains.
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BCH could target $556.40 if bullish momentum persists, but profit-taking could pull the price down to $490.80 or lower.
Bitcoin Cash hits an eight-month peak at $522.40, supported by bullish BBTrend and Smart Money Index signals, eyeing $556.40 amid strong buying pressure.
Bitcoin Cash Bulls Take Charge with Strong Technical Indicators
Readings from BCH’s BBTrend point to growing upward bullish momentum, with the indicator currently sitting at 9.4 at press time. This hints at the potential for continued price rallies in the short term.
On the daily chart, the green histogram bars that make up the BBTrend have been steadily increasing in size over the past few days, a clear sign of growing buying pressure and investor demand for BCH.
The BBTrend measures the strength and direction of a trend based on the expansion and contraction of Bollinger Bands. When the indicator prints green histogram bars that grow larger over consecutive sessions, it suggests that the bullish trend is strengthening.
For BCH, this setup means buyers are gaining control, volatility is expanding in the direction of the uptrend, and its price is likely to continue moving higher.
Furthermore, the coin’s Smart Money Index (SMI) supports this bullish outlook. As of this writing, the indicator is at 85.1, having climbed over 220% since June 5.
An asset’s SMI tracks the activity of experienced or institutional investors by analyzing market behavior during the first and last hours of trading. When it drops, it suggests selling activity or reduced confidence from these investors, pointing to bearish sentiment or expectations of price declines.
Conversely, when the indicator rises, key investors are increasing their buying activity, signaling growing confidence in the asset. Therefore, the steady uptick in BCH’s SMI over the past few weeks reflects the strong bullish pressure backing its current rally.
BCH Eyes Higher Highs as Buying Pressure Mounts
BCH could climb even higher in the coming days as strengthening demand fuels buying pressure. If accumulation persists, the coin could extend its rally and climb toward $556.40.
On the other hand, if demand stalls and profit-taking begins, the coin’s price could plunge to $490.80.
A break below this support floor could trigger further declines toward $444.70.
Conclusion
Bitcoin Cash’s recent surge to an eight-month high is underpinned by robust technical indicators such as the BBTrend and Smart Money Index, reflecting strong buying interest from both retail and institutional investors. While the outlook remains bullish with a potential target of $556.40, traders should remain cautious of possible corrections to $490.80 or lower if profit-taking intensifies. Monitoring these key levels will be crucial for assessing BCH’s next directional move in the volatile crypto market.
