Bitcoin Cash (BCH) Price Surges 27% amid Mt.Gox $9 billion Media Frenzy
thecryptobasic.com 12 July 2024 10:41, UTC Bitcoin Cash price rebounded above $368 on July 11, marking a 23% rebound from last week’s bottom. On-chain data shows how increased media traction from the Mt.Gox payouts could further propel the rally.
Bitcoin Cash bounces 27%, printing 4 Consecutive Green Candles
In the first week of July, the global crypto market suffered intense FUD (Fear, Uncertainty, and Doubt), triggered by a sell-off from the German government and the $9 billion payouts to Mt Gox creditors denominated on Bitcoin and Bitcoin cash.
Bearish headwinds from these events saw BTC and BCH sink to historic lows during widespread market liquidations on July 5. However, since then, buying momentum has gradually returned to the BCH markets again amid dovish Jobs reports and inflation data published by US Authorities this week.
The chart above illustrates how Bitcoin Cash has swung into a steady uptrend since the US Non-Farm jobs data was released on July 5.
At the time of writing on Friday, July 12, BCH price is trading above the $350 level, having climbed as high as $368 within the 24-hour timeframe. More so, BCH has now printed 3 consecutive green candles, a move that affirms the bulls stronghold on the short-term market momentum.
Mt Gox Links Has Propelled BCH up the Trend Tables
When it was announced that the $9 billion payouts to Mt Gox creditors would be done in BTC and BCH, it triggered widespread short-term sell-offs, as expected. But as the market FUD subsides amid positive macroeconomic reports from the US this week, the media buzz generated by the Mt Gox payouts could be driving up BCH prices.
The IntoTheBlock chart presents the daily trends of Bitcoin Cash (BCH) hits across relevant search engines like Google. A rising search trend often implies increased interest from existing investors or discovery by potential new entrants, and vice versa.
The chart above shows that the search score for “BCH” stood at 46 as of July 7. But as the Bitcoin Cash’s involvement in the Mt Gox payouts dominated the news reels, there has been a significant increase in Google users’ search hits for information on BCH.
At the time of publication on July 12, BCH search score has now surged to 67, reflecting a 46% increase over the last 5-days alone.
Historically, increased search interest for a particular asset often leads to a demand surge from both existing investors and new users who may discover the project on the trends tables.
Unsurprisingly, the 46% surge in BCH search score over the last five days, has coincided with a 27% price bounce. Hence, as bulls regain control of the crypto markets following positive US economic indices in July, the rising search trends could propel BCH price further toward the $400 level in the weeks ahead.
BCH Price Forecast: Bumpy Road to $400
Bitcoin Cash (BCH) is currently trading at $349.47, showing a slight increase of 0.68% over the past day. The price has experienced a notable recovery of 27.88% over the past week, signaling a potential bullish trend. The Auto Fib Extension levels provide a clear roadmap for BCH’s price action, highlighting key resistance and support levels.
The immediate resistance for BCH lies at $360.46, corresponding to the 0.236 Fibonacci retracement level. A break above this resistance could propel the price towards the next significant resistance at $406.18, the 0.0 Fibonacci level, marking a potential target of $400.
If BCH can sustain its momentum and break these resistance levels, it could pave the way for a more extended rally.
On the downside, key support levels are crucial for maintaining the bullish outlook. The first support level to watch is at $338.98, the 0.382 Fibonacci retracement level. A drop below this level could lead to a retest of the $318.22 support, the 0.5 Fibonacci level. If BCH fails to hold these support levels, it could signal a reversal and a move towards lower support at $297.46, the 0.618 Fibonacci level.
In summary, Bitcoin Cash shows promising signs of recovery with the potential to reach the $400 mark. Traders should closely monitor the resistance levels at $360.46 and $406.18. On the flip side, maintaining support at $338.98 and $318.22 is crucial for sustaining the bullish momentum. A break above the key resistance could signal a strong upward move, while failure to hold support could lead to a bearish reversal.
