The Bitcoin Cash price has been pressured recently as other altcoins have rallied. Today, the price has risen by about 0.8% and is trading at $503, which is slightly above yesterday’s low of $490. Similarly, Bitcoin SV price has also moved sideways in the past few days while wrapped Bitcoin price has fallen by about 4% in the past 24 hours.
What’s happening: Many altcoins rallied yesterday as demand for the currencies continued to rise. Ethereum, the second-biggest cryptocurrency in the world added more than $200, soaring to above $1,420. Other currencies that rallied are Litecoin and Bitcoin. With no specific news, traders were possibly looking at the overall weaker dollar and the incoming stimulus package.
The dollar index has lost almost 1% this week. This trend will possibly continue as the incoming administration continues to prioritize stimulus to boost the US economy. The first will be a $1,9 trillion package that will come probably this month. Analysts believe that cryptocurrencies like Bitcoin Cash will benefit since many people who will receive the money will invest in them.
On the four-hour chart, the Bitcoin Cash price soared to $631 early this month. It has dropped by more than 30% since then. However, we see that the price is slightly above the ascending trendline that is shown in black. This line connects the lowest levels since December 23. Also, it is along the 50-day and 25-day EMA.
Therefore, the uptrend will remain so long as the price is above the rising trendline. However, if it breaks below this price, it will lead to more weakness going forward.
Source: Investing Cube
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