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Bitcoin Cash (BCH) is outperforming the broader cryptocurrency market after it rose approximately 2% higher than other assets in the last 24 hours. The asset’s market has also witnessed a severe liquidation imbalance, with bears suffering huge losses in a four-hour time frame.
Bitcoin Cash signals bullish rally
CoinGlass data shows that traders betting short on Bitcoin Cash have seen $169,260 wiped out as BCH climbed suddenly.
The asset registered a sudden spike from a daily low of $590 to breach the $600 resistance level. This unexpected rise due to a technical breakout led to the massive liquidation for bearish traders.
As of this writing, Bitcoin Cash changed hands at $610.62, which represents a 1.03% increase in the last 24 hours. The coin earlier hit an intraday peak of $616.30 before a slight correction owing to a lack of volume support.
The trading volume is down by 15.07% at $350.77 million as investors maintain cautious optimism about the future price path.
Although some bulls anticipate Bitcoin Cash to soar to between $650 and $720, it is worth mentioning that BCH has maintained muted growth. In the last 30 days of price volatility, BCH has not soared higher than $626.
However, Bitcoin Cash has room for further upside given its technical bullish indicators.
For instance, its Relative Strength Index (RSI) is at 56 and suggests a neutral position. If the community supports and volume exits the red zone, it could significantly impact the price positively.
Recently, the CEO of ShapeShift, Erik Voorhees, sparked speculation as he was suspected of having reactivated a nine-year dormant Ethereum wallet. He immediately swapped the Ethereum for Bitcoin Cash in a rebalancing move.
The development raised questions about the shifting confidence of Voorhees from Ethereum to Bitcoin Cash and the implications for BCH’s future trajectory. The widespread sentiment was that if the wallet truly belonged to Voorhees, it signaled a massive bet on Bitcoin Cash.
Can Bitcoin Cash dethrone Cardano?
Meanwhile, in the broader cryptocurrency market, every climb of Bitcoin Cash pushes it closer toward the top 10 list.
It is currently about $510 million away from flipping Cardano from the 10th position in terms of market capitalization.
The threat to Cardano is greater because ADA has been battling downward price movement for some time and has lost 18.24% of its value in the last 30 days.
Comparatively, Bitcoin Cash has gained over 12% within the same period. Any sustained price rise could see BCH dethrone Cardano from the top 10 list.