2023-9-16 10:00 |
Bitcoin Cash (BCH) price has risen in the past four straight days as the mood in the cryptocurrency industry improves. It rose to a high of $223.54, the highest level since August 30th. Other cryptocurrencies like Ethereum, ThorChain, Axie Infinity, and VeChain have also bounced back.
Why BCH price is risingThe main catalyst for the soaring Bitcoin Cash price was the decision by Franklin Templeton to file for a spot Bitcoin ETF. This was an important event since Franklin is one of the biggest companies in finance in the world with over $1.5 trillion in assets under management.
Franklin Templeton joined other big Wall Street companies like Fidelity, Blackrock, and Ark Invest that have applied for an ETF. Analysts believe that the SEC will be under pressure to approve some of these funds.
For one, the SEC has already suffered a major blow when Grayscale won a lawsuit that forced it to review the conversion of GBTC into a spot ETF. Also, all these companies have put in place surveillance measures in place.
Therefore, the BCH price has jumped because investors believe that an ETF approval will be a positive thing for Bitcoin. As I wrote here, some analysts are hoping that Bitcoin will soar in the coming months.
Still, Bitcoin Cash price recovery faces significant risks. The biggest risk is that America’s inflation has started rising again and the trend could continue as Brent and WTI soars. WTI jumped to $90, the highest level since November,
Further, the ongoing UAW strike could trigger inflation in the used car industry. Therefore, the Federal Reserve will likely continue hiking interest rates in its next week’s meeting. Higher rates in the United States will push Money Market Funds (MMF) above 6%. As such, many people will now start moving from cryptocurrencies to MMFs.
Bitcoin Cash price forecastThe daily chart shows that the BCH price has made a strong recovery in the past few days. This recovery happened after the coin retested the important 200-day exponential moving average (EMA). It has now rebounded above the 50-day EMA and the upper side of the descending channel.
The Relative Strength Index (RSI) has moved above the neutral point at 50. Therefore, the outlook for Bitcoin Cash is bullish with the next level to watch being at $264.46, the highest level on July 30th. The alternative scenario is where the coin retreats and moves back to the descending channel.
The post Bitcoin Cash price is recovering: here’s the risk to worry about appeared first on Invezz.
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