Altcoins offer investors and traders an alternative to the big cryptocurrencies in the market. Since the beginning of this week, these major cryptocurrencies like bitcoin and ethereum have continued to skyrocket, dragging the majority of the market with them. bitcoin Cash, a direct fork ofbitcoin” target=”_blank” rel=”nofollow”> bitcoinis succeeding after today's 3% increase in total market capitalization.
According to CoinGecko, the coin is up nearly 15%, making it the biggest gainer in the current market environment.
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Excellent market conditions stimulate traders' interest
The link between traditional and cryptocurrency markets cannot be underestimated. Major market indices such as the Dow Jones and the S&P 500 show a high correlation with major crypto assets like bitcoin. This positive correlation gives the altcoin market a helping hand in situations like this.
Investors, traders and economists are keeping an eye on several G7 countries central bank meetings such as Japan, the United States and the United Kingdom.
The most notable of these is the highly likely September rate cut by the US Federal Reserve, hinted at by Fed Chairman James Powell. This means that the Fed, and other central banks like it, are seeing that the economy is getting healthy again, so they do not require measures such as raising interest rates.
Both newbies and seasoned players have also jumped into the cryptocurrency derivatives market. According to CoinGlass, BCH’s skyrocketing rise has helped bring more long-term investors into the picture, bringing new contracts to the market. Online analysts are also optimistic about BCH’s continued longevity into next month.
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twitter.com/search?q=%24BCH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$BCH Breakout of the descending channel on the 12-hour time frame
Waiting for a bullish wavetwitter.com/hashtag/BCH?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#BCH twitter.com/hashtag/BCHUSDT?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#BCHUSTD twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#Cryptocurrencies image.twitter.com/O7PBegZ2px
— ZAYK Charts (@ZAYKCharts) twitter.com/ZAYKCharts/status/1817598142818447856?ref_src=twsrc%5Etfw” rel=”nofollow”>July 28, 2024
These positive metrics leave bulls with enough ground to continue their ascent. Coupled with the halving event that BCH experienced last April, the coin has since become another crowd favorite for its near-consistent performance.
bitcoin Cash: Will the bullish momentum continue?
The overall financial situation of the global market can be summed up in one sentence: very optimistic. However, BCH investors and traders should keep in mind that this bullish trend is an attempt at recovery after months of bearishness.
Although the correlation between btc and BCH is high, investors should remain cautious as this may also translate into BCH following bitcoin lower if it corrects to a more sustainable level.
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And this could also be the case. The bulls, after almost a month of continuous gains, will eventually run out of steam. Once the bears take over the market, we could see the token stabilize in its current price range of around $450.
It will take another month of positive market conditions for this type of move to continue. Investors and traders should keep an eye on the broader economy and the upcoming Federal Open Market Committee decision, as most decisions in the financial world will depend on this metric.
Featured image from Medium, chart from TradingView
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