The aggregated crypto markets have been subjected to the volatility experienced by Bitcoin over the past several days, which has primarily favored bears. The recent market-wide downswing has led altcoins like Bitcoin Cash to shed some of their recent gains, although their market structures still remain firmly bullish.
Analysts are now noting that Bitcoin Cash has been leading the aggregated crypto markets, which could signal that where it trends in the near-term will offer insight into where other major altcoins head next.
With this in mind, it does appear to be a strong possibility that the markets could be on the cusp of a sizeable rally, as Bitcoin Cash is showing some signs of bullishness at the moment.
Bitcoin Cash May Be Frontrunning the Aggregated Altcoin Market
Currently, Bitcoin Cash is trading up 2% at its current price of $341, which marks a decent climb from daily lows of $325, and only a slight drop from highs of $350.
Over a one-week period it is clear that the crypto is firmly being controlled by bulls, as it is up from lows of $275. Its rise from these lows has come about against a backdrop of bullishness seen by Bitcoin and other major altcoins, but BCH has been generally outperforming the markets.
One interesting factor that should be noted is that BCH appears to be frontrunning the aggregated crypto markets, meaning that altcoin traders can get hints as to where other cryptos will trend based on Bitcoin Cash’s price action.
“Majors Update: One month later, and nothing’s changed. • $BCH continues to lead: +60% (5 up impulses) • $LTC following: +20% (4 impulses) • $ETH finally: +10% (3 impulses). Cross coin correlation is an extremely powerful method when it comes to alts, majors particularly,” Hsaka, a popular crypto analyst, explained in a tweet from this weekend.
Is BCH Signaling That the Markets Are About to Rally?
Bitcoin Cash has also formed a striking correlation to Bitcoin SV throughout 2020, with the two cryptocurrencies incurring similar price action – albeit seeing different magnitudes of gains.
“I wonder why $BCH and $BSV have the exact same chart. It’s almost creepy how similar these movements are. Perfectly timed,” DonAlt, another popular analyst, explained.
Because Bitcoin SV is trading up 9% currently and is attempting to spark yet another parabolic upswing, it is a strong possibility that BCH will do the same and drag the altcoin markets up with it.
Bitcoin Cash, currently ranked #4 by market cap, is up 3.88% over the past 24 hours. BCH has a market cap of $6.26B with a 24 hour volume of $4.29B.
Chart by CryptoCompare
Posted In: Bitcoin Cash, Altcoins, Analysis, Price Watch
Like what you see? Subscribe to CryptoSlate
Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.
Sign up to stay informed
Cole is a freelance journalist based in Southern California, where he’s an undergraduate at the University of California, Irvine, studying philosophy. He focuses primarily on covering cryptocurrency and blockchain-related news. He owns a non-life-changing sum of Bitcoin and enjoys day trading.
View author profile
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.