BCHUSD: Why is Bitcoin Cash Price Furiously High Today?

Bitcoin cash price (BCHUSD) rose today as investors remained optimistic about the cryptocurrencies industry. The price is trading at $266, which is the highest it has been since May 9th. Other cryptocurrencies rallied as well, with Bitcoin staying above $10,000. In total, according to CoinMarketCap, the total value of cryptocurrencies has risen to more than $285 billion. That is a significant rally from last week’s $247 billion.

BCHUSD targets $280

Bitcoin cash price has been on an upward trend since March 20, when it dropped to a low of $135. The price has since then gained by more than 100% partly because of the overall rallying of other cryptocurrencies. The rally was also partly due to the halving event that happened in April followed by last month’s BTC halving.

There was no specific reason for Bitcoin price rally today but investors are pointing to the escalating civil unrest in the United States. In a “law and order” statement, the president said that he would deploy the military to deal with rioters, who are causing significant damage to American cities.

Another reason for the breakout could be technical.

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Bitcoin cash price (BCHUSD) technical analysis

On the daily chart below, Bitcoin Cash price has been in an upward trend since March. Also, the price has just moved above the 100-day and 50-day exponential moving average, which indicates that bulls have taken control. Additionally, the upward trend is being supported by the blue trendline shown below.

Therefore, I expect the bulls to remain in control as they attempt to test the important resistance level at $283. This is where the price found significant resistance before and is also slightly above the 38.2% Fibonacci Retracement level.

On the flip side, a move below $242 will invalidate this thesis. This price is slightly above the psychological level of $240 and is along the 50-day EMA.

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