- The Bitcoin Cash price reached its highest level since August 2022.
- Volume increased as BCH could soon reach overvalued levels.
Bitcoin Cash (BCH) It reached its highest price since August 2022 after breaking through the $150 zone on February 20. According to CoinMarketCap, the cryptocurrency posted the highest gains on the said date as it hit a high. But at press time, it appears that momentum has subsided as BCH is trading at $147.53.
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BCH greens in jeopardy…
been there cases where such slippage was only a short-term inconvenience. So is this one of those moments? According to the daily chart, the Relative Strength Index (RSI) was above normal at 63.74. The indicator is a momentum oscillator that estimates price volatility and momentum changes.
Now, the BCH RSI value indicated that the cryptocurrency had greater purchasing power. But in the event that the price reaches 70, it means that it has moved into an overbought zone. Therefore, there could be significant price reversals in that area.
According to the moving average convergence divergence (MACD), Bitcoin Cash’s momentum is not necessarily bullish. This was because the blue dynamic line was located just slightly above the orange one. This situation meant that buyers and sellers were in a heated competition for control. But Sagittarius had an advantage nonetheless.
Furthermore, the DMI suggested a consolidation in the near term, as there was no support for a sustained rise.
At the time of writing, the -DMI (red) was 8.93. The opposite number, +DMI (green), was significantly higher at 24.73. But the average directional index (ADX), which gives an indication of the weak or strong direction of assets, was trending lower. This means that the green could be intercepted before it hits $150 BCH again.
The driving force behind the rally could be…
Regarding the on-chain state, bitcoin cash Rate According to Sentiment, it has been one of the driving forces behind the recent rally. At the time of writing, the positive sentiment was 10.29. And the negative rate was 6.71.
However, a small difference between the two metrics could mean that the positive sentiment towards the cryptocurrency has diminished.
realistic or not, here it is BCH Market Cap Relative to BTC
Also, there have been many transactions that have passed through the Bitcoin Cash network recently, as evidenced by the volume. At press time, the BCH volume was 346.09 million.
The market value to realized value (MVRV) ratio was 10.26%. The metric describes the rate at which holders have generated profits and the value of the asset. such a high proportion implicit While the rally generated decent gains for holders, it could also mean an overvalued position in the short term.