Bitcoin Cash (BCH) is up in the clouds today, and could continue to climb in the short-term.
This morning, the exchange rate of Bitcoin cash-U.S. dollar hit an 11-day high of $1,623.80, before experiencing a slight dip in momentum. By this afternoon, the third largest cryptocurrency, going by market value, is currently trading at $1,508. This is up 21% for the last 24 hours, calculated by figures according to CoinMarketCap.
A glance at the exchange data suggests that the Bitcoin Cash rally is off the back of Korean desks. Trading volumes in BCH/KRW on the Bithumb platform, one of South Korea’s largest cryptocurrency exchanges, have increased by 42% over the past 24 hours.
This rise may be driven by news today that South Korean financial regulators have “no plans” to add new regulations or restrictions on the trading of cryptocurrencies.
Meanwhile, the total volume of trading over the last 24 hours is far in excess of $4 billion, the highest since November 13th. A rally in high trading volumes is indicative of a very active market, and a rally that is likely to last. The analysis of price action also suggests this rally is likely to extend in the near-term.
The relative strength index has an overbought nature, which could be what was behind the pullback from earlier highs of $1,600.
On the other hand, the 5-MA and 10-MA can be seen curving upwards in favour of the bulls. The daily chart has the moving averages curving upwards as well.
The daily relative strength index, though not far from the overbought territory, falls way short of the highs we saw earlier this month.
The base seems to have made a shift upwards to $1,250.
Technical pulls could lose their momentum around that $1,250 mark.
Bitcoin Cash looks ready to topple resistance at $1,550 and climb to around $1,800-$2,000 in the near future.