What comes after Bitcoin Cash? [BCH] reclaims $110 by riding BTC’s coattails

• The correlation of BCH with BTC has led to a price rally
• If the positive conviction persists, a further increase in the value of the coin can be expected

Because of its statistically significant positive correlation with Bitcoin [BTC]Bitcoin cash [BCH] The price has also recovered in the last 24 hours. This follows the decision by the US Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) to restore all customer deposits at the failed Silicon Valley Bank (SVB).

When SVB collapsed on March 11, BCH slipped below $110 and oscillated between $109 and $110 for most of the weekend. However, when BTC’s price surged in the early trading hours of March 13 following federal regulators’ decision to sanitize all SVIB depositors, BCH reclaimed and surpassed $110.

At press time, BCH was still rallying and up 5% in the last 24 hours. At that time, the cryptocurrency was traded at $127.31.

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Are the cops here to stay?

An assessment of BCH’s price action on the daily chart indicated that the recent rally heralded the start of a new bull cycle.

At press time, the Moving Average Convergence Divergence (MACD) was preparing to cross the trendline in an upward direction. Once this happens, a new bull cycle would begin and the price of BCH will continue to rise.

Thanks to improving sentiment and growing accumulation, the Relative Strength Index (RSI) reclaimed its place above the 50 neutral line and was fixed at 52.18. Likewise, BCH’s Chaikin Money Flow (CMF) dynamic line returned a positive reading of 0.17.

This was further evidence that the price of BCH will continue to rise, especially if the positive sentiment continues.

Source: BCH/USDT on TradingView

Realistic or not, here is the market cap of BCH in BTC terms

Structure for success in the chain

BCH has seen sustained demand over the past 24 hours, according to on-chain data provider Santiment. As a result, the number of daily active addresses trading the coin has increased by 100%. At press time, 132,370 addresses were handling BCH.

Greater network activity is a well-known recipe for the sustained rally in an asset’s price. With BCH’s weighted sentiment still in positive territory, buying momentum will increase as the number of active addresses continues to recover. This will eventually lead to another significant price increase.

Consider this: in the last 24 hours alone, BCH’s open interest is up 5%. Generally, an increase in open interest is seen as a bullish signal, particularly as it suggests growing optimism and confidence in the asset’s price direction.

Source: coin jar

Therefore, the price of BCH could continue to rise. However, a drop in the price of the king coin could also lead to a drop in the BCH value.

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