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Bitcoin’s (BTC) bounce above $43,000 has resulted in a strong rally for cryptocurrencies related to the coin. According to CoinMarketCap, Bitcoin Cash (BCH), the token created in August 2017 as a result of a Bitcoin hard fork, rose by 14.04% in the last 24 hours.
The increase ensured that BCH changed hands at $270. However, that was not the only cryptocurrency affected by the rise in Bitcoin’s value. Bitcoin SV (BSV) overshadowed BTC’s and BCH’s increase as it rose by 60.69% within the same timeframe.
Bitcoin SV also came to life as a result of a blockchain split. But unlike Bitcoin Cash, BSV was launched later in November 2018.
BCH Eyes $300 Again
Per the 4-hour BCH/USD chart, the cryptocurrency had formed an asymmetrical triangle as shown below. This chart pattern was vital to BCH’s breakout of its consolidation phase. Consequently, there was an eventual break above the $229.15 resistance.
Typically, this break gives a high probability of a buying setup. It seemed that bulls were able to spot the breakout and took advantage as BCH also broke the $250 psychological resistance. In light of the growing momentum, Coin Edition checked the Exponential Moving Average (EMA).
At press time, the 9-day EMA (blue) rose above the 20-day EMA (yellow), indicating a bullish trend for BCH. The position also enhanced the prospect of a price increase to $300.
Should bulls continue to dictate the momentum, then BCH might rise in the $300 direction. However, a reversal in the trend could pull BCH back to $250.
It’s an Asian BSV Party
According to CoinGecko, BSV’s rise was not only because of Bitcoin’s movement. The price tracking platform showed that there was an increase in demand for the cryptocurrency on the South Korean exchange Upbit, causing the hike.
Per the price action, BSV had become overbought, as shown by the RSI. This notion was also supported by the Bollinger Bands (BB). Unless South Korean traders keep buying the coin, a drawdown might be next for BSV.
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