Bitcoin Cash Surges: Can It Sustain Momentum Amidst Market Turbulence?

The recent surge of Bitcoin Cash (BCH), climbing 7% while major cryptocurrencies like Bitcoin, Ethereum, and Cardano stumbled, has sparked interest across the crypto community.

Bitcoin Cash price rose by 7% on Friday, outperforming other major cryptocurrencies which saw their gains evaporate.

This had some investors considering what drove BCH’s best move in days, especially as it came amid a broader downturn for crypto prices.

Here’s a look at what happened and what could come next.

What happened with Bitcoin Cash?

Bitcoin Cash price rose as high as $312 on Friday, marking a 7% gain over 24 hours. This came as Bitcoin, Ethereum and Cardano all lost some of the gains posted on Thursday.

BCH’s rally also came amid a period of caution for investors. Digital gold miners were seen selling off a $52 million holding of the token.

This came as part of a wider move to reduce their cryptocurrency treasury, which signaled some concern over the market’s near-term future.

But investors were also warned over the impact of new tariffs on Canadian and Mexican imports, which were designed to increase inflation.

This macroeconomic factor could put pressure on investors to reduce their cryptocurrency positions, potentially impacting any further gains for BCH.

What is Bitcoin Cash and why is it used?

Bitcoin Cash is a cryptocurrency that is used to carry out decentralized transactions and is mined by users who process transactions in order to add new blocks to the chain.

It is the world’s twenty-first largest cryptocurrency with a market cap of $6.3 billion, according to data from CoinMarketCap.

It is also one of the most widely traded cryptocurrencies, with an average daily trading volume of over $1 billion.

Where could Bitcoin Cash go next?

Bitcoin Cash price now hovers above the $300 mark, a level that could be key for traders in the coming days.

A break below $300 could open the way for a move to $280, erasing the bulk of BCH’s recent gains from the lows of last week.

However, BCH’s inability to sustain above the 20-day Exponential Moving Average (EMA) from Friday, despite rising trade volumes, could be a technical factor that bears in mind.

Should sellers return to control, then we could see BCH price testing the lower levels of support once more.