• Bitcoin Cash [BCH] has seen a 115% upside in the last seven days, outperforming Bitcoin.
• Short liquidations and increasing bullish optimism have been pushing prices higher.
• On-chain data revealed that investor sentiment for BCH has been gradually rising in the last four weeks.
Bitcoin Cash’s 115% Uptick
Bitcoin Cash [BCH] has been having an exceptional run these past few weeks, with its press time price representing a 115% change from a week ago. Additionally, it was trading at 156% of its lowest price in the last four weeks, returning to mid-May levels of 2022.
Short Vs Long Liquidations
Short liquidations seem to be heavily influencing BCH’s rally as they dominate market activity in the recent period. However, long liquidations have also increased which suggests that there is significant bullishness among investors.
Rising Investor Sentiment
On-chain data points to a gradual rise in investor sentiment for BCH over the past four weeks, accompanied by low daily volume until 21 June when it registered an increase. This could indicate that whales may be driving this momentum and retail investors are following suit.
Risk of Major Selloff
Despite its remarkable performance over the last two weeks, Bitcoin Cash may soon experience a major selloff due to RSI indicators pointing to an overbought territory. So far no news is substantial enough to account for such an impressive surge and therefore caution should be taken with any investing decisions related to BCH at this time.
Conclusion
Overall, Bitcoin Cash has experienced considerable growth followed by increasing short liquidations and bullish optimism from investors alike but there is still risk involved if one chooses to invest at this stage in the cryptocurrency’s life cycle without careful analysis of on-chain data or RSI indicators.