Bitcoin Cash Hits 5-Week High As Trump Speech Calms Mt. Gox Fears

Bitcoin Cash (BCH) has emerged as one of the top gainers in the past 24 hours, riding the wave of a broader crypto market rally ignited by Donald Trump’s recent speech and furthered by rate cut expectations from the United States Federal Reserve.

BCH Price Rebounds 30% — The Best Return Among Top-20 Cryptos

The BCH price has risen by over 15.20% in the last 24 hours to reach $457, its highest level in five weeks. Looking broadly, BCH’s rally is part of a rebound that started on July 25, just two days before the scheduled Trump keynote at the Bitcoin 2024 conference in Nashville.

Since then, BCH has rebounded by over 30%, also mitigating the selloff fears led by the ongoing Mt. Gox reimbursement of Bitcoin (BTC) and Bitcoin Cash tokens to their creditors. Interestingly, BCH’s returns in the said period have outpaced those of other top crypto rivals, including BTC.

Trump’s promise to make the U.S. a central crypto force worldwide, followed by his intentions to transfer the federal government’s 212,000 BTC worth about $15 billion to the U.S. Treasury, has further boosted the market confidence, thus contributing to the Bitcoin Cash’s ongoing price recoveries.

Meanwhile, the improving odds of the Federal Reserve cutting its benchmark interest rates by 25 basis points have further boosted upside sentiment in Bitcoin Cash and other top crypto markets.

For instance, as of July 29, the target rate probability for a 25 bps September rate cut was 89.60%, compared to 57.90% a month ago.

Bitcoin Cash Price Prediction: A Limited Upside Scenario

From a technical perspective, Bitcoin Cash’s ongoing price gains are part of a breakout move emerging out of its prevailing inverse-head-and-shoulders (IH&S) pattern.

An IH&S pattern forms when the price makes three dips, with the middle dip being the lowest. The two side dips are about the same size. These dips share a common resistance line called the neckline. The pattern is confirmed when the price breaks above the neckline and typically rises by an amount equal to the distance from the lowest point of the pattern to the neckline.

As of July 29, BCH’s price was breaking out of its IH&S pattern and moving toward its target of around $500, up about 10% from the current price levels.

Interestingly, the IH&S upside target coincides with the 0.5 Fibonacci retracement line, which also served as resistance in May 2024.

On the flip side, such a rally will likely push the daily relative strength index (RSI) above 70, which is considered an “overbought territory” that typically follows a period of consolidation or correction.

As a result, BCH’s price may face upside exhaustion upon reaching $500, which will likely bring the price down toward the 0.382 Fib line at around $458.