Bitcoin Cash is showing impressive growth, reaching its highest price since December. This article reviews current metrics and potential risks.
Current Values and Trends of Bitcoin Cash
Bitcoin Cash (BCH) continues to rise and today, June 20, reached a maximum of $485, up 95% from its lowest level in April. The rally is observed in a high trading volume environment, which increased by 75% to $757 million, primarily on platforms like Binance and HTX. Open interest in futures has also increased to $600 million, the highest level this year.
Technical Data Analysis
In technical analysis, there is a formation of a double-bottom pattern at the $284 level, which was recorded in August last year and April this year. The current level of $485 is close to a resistance mark of $640, established as the highest swing in December. The BCH price is also significantly above the 50-day and 200-day exponential moving averages, while the Average Directional Index has risen to 23, indicating gaining momentum.
Risks and Warnings for Investors
Despite the positive dynamics, there are risks associated with the price rise of BCH. In particular, the weighted funding rate in the futures market has turned negative, suggesting possible future price declines. Additionally, exchange inflows, which reached $18 million on Thursday, indicate potential selling by investors.
Thus, Bitcoin Cash demonstrates significant growth with cautionary risks. Investors should remain vigilant considering potential market corrections.
