Bitcoin Cash Prediction: BCH Shows Bullish Signal of $7M After 17% Decline in June
Bitcoin Cash saw a resurgence in its price, reaching the $390 mark on June 30, marking a 17% decline for June 2024. Despite this negative performance, the cryptocurrency managed to recover most of its losses from the recent market crash on June 24. Data indicates that bullish traders are gearing up for a potentially positive start to July 2024.
The crypto market faced significant volatility in June 2024, particularly after the release of overheated jobs data in the US on June 7, which dashed hopes of a Fed rate cut in the first half of 2024. This event had a ripple effect on various risk assets, including Bitcoin Cash (BCH), which was dragged down in a 3-week downward spiral culminating in the June 24 market crash. However, there are signs that this crash might have signaled the end of the bearish phase, hinting at a more optimistic outlook for BCH and other cryptocurrencies in July 2024.
Analyzing the BCH price action chart, it is evident that the cryptocurrency’s price dropped from $454.75 at the beginning of June to close the month around $390, resulting in a 17% monthly loss. Despite the double-digit decline, a closer look reveals a notable upward trend following the market’s bottom on June 24 when BCH hit $344, its lowest point in over 100 days. Subsequently, bullish traders and new strategic players have been actively working to reverse this trend.
In the last week of June, BCH experienced a 16% price increase, surging from $344 on June 24 to reclaim the $390 level by July 1. Recent developments in the Bitcoin Cash derivatives market suggest that traders are positioning for further gains in July 2024.
With Bitcoin Cash price back at $390 on July 1, up 16% for the week, traders are increasingly optimistic about the crypto market’s future. The Coinglass Liquidations map data indicates a dominance of bullish sentiment in the BCH markets, with active LONG positions surpassing $7 million, exceeding SHORT contracts by over $1.6 million. This disparity suggests growing confidence among traders in BCH’s upward trajectory in July 2024.
For BCH to stage a breakout in July, reclaiming the $400 territory is crucial. Technical indicators point to a positive sentiment among traders, with many anticipating a potential surge towards the $450 mark. Overcoming the psychological resistance at $400 is seen as the first step, with subsequent targets set at $438.13 and $460.45, representing Fibonacci retracement levels.
In case of a downward trend, immediate support for BCH rests at $387.46, with strong buying interest observed at this level. Further downside could test support at $305.47, a critical zone that may prevent significant declines. Traders are advised to conduct thorough research before making investment decisions, as the market remains dynamic and subject to fluctuations.
