Bitcoin Cash Hits New Yearly High After Fed Rate Cut
Bitcoin Cash (BCH) price rose to $648.20 on Thursday. This is its highest level so far this year. The price increase followed the US Federal Reserve’s decision to cut interest rates by 25 basis points (bps). The Fed also hinted at possible further rate cuts later in 2024. This boosted confidence in the crypto market.
Trading Volume and Market Activity Surge
On-chain data shows BCH’s trading volume reached $1.18 billion on Thursday. This is the highest volume since December 2024. Increased trading volume signals strong interest from investors and better liquidity for BCH.
Futures open interest for Bitcoin Cash also rose from $486.36 million on September 11 to $595.78 million on Thursday. This indicates more money is entering the market, supporting the price rally. The BCH long-to-short ratio stands at 1.28, its highest in over a month, showing more traders expect prices to rise.
Bitcoin Cash Price Outlook
BCH started the week with a slight drop but quickly recovered. It closed above $616.70 on Wednesday and continued upward to $648.28 on Thursday. If the bullish trend continues, BCH could test its April 5, 2024 high of $719.50.
Technical indicators support this outlook. The Relative Strength Index (RSI) is at 65, showing growing buying momentum. The Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover since early September, indicating a strong upward trend.
However, if BCH faces a correction, it may drop toward its 50-day Exponential Moving Average (EMA) near $573.70.
