Altcoins offer investors and traders an alternative to the major cryptocurrencies on the market. Since the beginning of this week, major cryptocurrencies such as Bitcoin and Ethereum have continued to rise rapidly, pulling the majority of the market with them. Bitcoin Cash, a direct fork of Bitcoinis seeing success after the current 3% increase in total market capitalization.
According to CoinGecko, the coin is up nearly 15%, making it the top gainer in the current market environment.
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Excellent market conditions stimulate traders’ interest
The link between traditional and crypto markets cannot be understated. Major market indices such as the Dow Jones Index and the S&P 500 show a high correlation with major crypto assets such as Bitcoin. This positive correlation thus gives a helping hand to the altcoin market in situations like this.
Investors, traders and economists are keeping an eye on several central bank meetings of the G7 nations such as Japan, the United States and the United Kingdom.
The most notable of these is the highly likely US Federal Reserve rate cut in September, suggested by US Fed Chairman James Powell. This means that the Fed, and other central banks like it, are observing that the economy is returning to health and therefore does not need to take action such as raising interest rates.
Both experienced and newcomers have also dipped their toes into the crypto derivatives market. According to CoinGlass, BCH’s surge has helped bring more long-term investors into the mix, introducing new contracts to the market. Online analysts are also optimistic that BCH will continue its strong performance through the next month.
$BCH Descending channel breaking on 12H ✅
Waiting for a bullish wave📈#BCH #BCHUSDT #Crypto pic.twitter.com/O7PBegZ2px
– ZAYK Charts (@ZAYKCharts) July 28, 2024
These positive metrics leave the bulls more than enough ground to continue their ascent. Along with the halving event that BCH experienced last April, the coin has become another crowd favorite for its near-consistent performance.
Bitcoin Cash: Will the Bullish Momentum Continue?
The overall financial situation of the global market can be summed up in one sentence: Very optimistic. However, BCH investors and traders should note that this bull run is an attempt to recover after months of bearishness.
Although the correlation between BTC and BCH is high, investors should still be cautious as this could also translate into BCH following Bitcoin’s decline if it corrects to a more sustainable level.
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And this could be the case as well. The bulls, after almost a month of continuous gains, will eventually get exhausted. Once the bears take control of the market, we could see the token stabilize at its current price range of around $450.
It will take another month of positive market conditions for this type of movement to continue. Investors and traders should then watch the broader economy and the upcoming Federal Open Market Committee decision, as most of the financial world’s decisions will hinge on this metric.
Featured image from Medium, chart from TradingView