Bitcoin Cash Breaks Out of Triangle Pattern: Bullish Outlook or HYPE Rally Over?
In the past 24 hours, Bitcoin Cash (BCH) has emerged as one of the top 100 cryptocurrencies with the best performance. The BCH/BTC trading pair on Bitstamp has broken out of a triangle pattern, indicating a potential bull run against Bitcoin (BTC). This pattern is characterized by a series of descending intraday price highs and ascending price lows, both of which suggest a narrowing price range. Breakouts from such patterns often lead to significant moves, suggesting that BCH could see an impressive bull run against BTC in the coming days.
Moreover, the ratio of BCH/BTC has already surpassed the 200-day simple moving average, a barometer of long-term trends tracked by both retail and institutional investors. The expected ascent of the ratio could face resistance at 0.00467, the swing low registered in February 2024, followed by the December high of 0.00636. However, a potential move below the monthly low of 0.00373 could invalidate the bullish outlook.
On the other hand, the decentralized exchange Hyperliquid's HYPE token may have headed lower after a near five-fold rally to $44 in three months. The daily price chart of HYPE shows that while the token has hit higher intraday highs recently, the 14-day relative strength, a momentum indicator, has diverged lower, confirming a negative divergence. This pattern suggests weakening upside momentum and often presages bearish trend reversals.
In conclusion, while BCH appears poised for a bull run against BTC, investors should be cautious about the potential for a reversal in the HYPE token. It is essential to monitor both the BCH/BTC ratio and the HYPE token's momentum indicator to make informed decisions about their investments.
