Bitcoin Cash Price Analysis: Here’s Why BCH Gained 33% in 7-Days

Bitcoin Cash Price Analysis

Bitcoin cash price broke above $380 on July 17, marking a 33% uptick within the 7-day timeframe, on-chain data suggest that BCH has attracted significant interest following the announcement of the Mt Gox payouts.

Bitcoin Cash Prints 33% Gains for the Week

In the first week of July, the global crypto market suffered intense FUD (Fear, Uncertainty, and Doubt), triggered by a sell-off from the German government and the $9 billion payouts to Mt Gox creditors denominated on Bitcoin and Bitcoin cash.

Bearish headwinds from these events saw BTC and BCH sink to historic lows during widespread market liquidations on July 5. However, since then, buying momentum has gradually returned to the BCH markets again amid dovish Jobs reports and inflation data published by US Authorities this week.

Bitcoin Cash Price Action BCHUSD | TradingView

The chart above illustrates how Bitcoin Cash has swung into a steady uptrend since the US Non-Farm jobs data was released on July 5.

At the time of writing on Friday, July 19, BCH price is trading above the $380 level, having climbed as high as $405 within the weekly timeframe. More so, BCH has successfully defended the $380 support despite the likes of BTC, ETH and Solana all experiencing significant pullbacks in the last 2 days,

This move that affirms the bull traders have stronghold on the Bitcoin Cash short-term market momentum, likely due to an internal bullish catalyst.

Mt Gox Links Has Boosted Bitcoin Cash Popularity

When it was announced that the $9 billion payouts to Mt Gox creditors would be done in BTC and BCH, it triggered widespread short-term sell-offs, as expected. But as the market FUD subsides amid positive macroeconomic reports from the US this week, the media buzz generated by the Mt Gox payouts could be driving up BCH prices.

The IntoTheBlock chart presents the daily trends of Bitcoin Cash (BCH) hits across relevant search engines like Google. A rising search trend often implies increased interest from existing investors or discovery by potential new entrants, and vice versa.

The chart above shows that the search score for “BCH” stood at 46 as of July 7. But as the Bitcoin Cash’s involvement in the Mt Gox payouts dominated the news reels, there has been a significant increase in Google users’ search hits for information on BCH.

At the time of publication on July 12, BCH search score has now surged to 67, reflecting a 46% increase over the last 5-days alone.

Historically, increased search interest for a particular asset often leads to a demand surge from both existing investors and new users who may discover the project on the trends tables.

Unsurprisingly, the 46% surge in BCH search score over the last five days, has coincided with a 27% price bounce. Hence, as bulls regain control of the crypto markets following positive US economic indices in July, the rising search trends could propel BCH price further toward the $400 level in the weeks ahead.

Bitcoin Cash Price Forecast: $400 Breakout Imminent

Based on the current technical analysis, Bitcoin Cash price is showing strong bullish momentum as it trades at $389.58, having recently gained 33.23% over the past 14 days.

The Parabolic SAR (Stop and Reverse) indicator is currently positioned below the price at $323.80, indicating a bullish trend. This suggests that the momentum is in favor of the bulls, and a break above the $400 resistance level is becoming increasingly likely. If BCH price manages to close above this level, it could pave the way for further gains, with the next key resistance level around $420.

The Directional Movement Index (DMI) also supports the bullish outlook. The +DI (blue line) is at 17.2101, while the -DI (red line) is at 30.7789, showing a recent crossover that signifies potential bullish momentum.

The ADX (orange line) at 20.1395 indicates that the current trend is gaining strength. Traders should watch for the +DI to continue rising above the -DI, which would confirm the continuation of the upward trend.

On the downside, immediate support is found at the recent low of $369.89. If this level fails to hold, the next support level is around $350. A drop below $350 could invalidate the current bullish setup and lead to further downside pressure.

Overall, with strong indicators favoring the bulls and a significant resistance level within reach, Bitcoin Cash appears poised for a potential breakout above $400. Traders should closely monitor these key levels to confirm the continuation of the bullish trend.