Bitcoin Cash (BCH) is among the altcoins that recorded substantial gains following Bitcoin’s price rally above $66,000 on Oct. 14.
As Bitcoin (BTC) surged higher, driven by fresh spot exchange-traded fund (ETF) inflows of over $555 million, Bitcoin Cash followed suit with a double-digit jump.
After starting the month with a dip to a low of $307 on Oct. 3, BCH edged higher on Monday, boosted by Bitcoin’s breakout on Oct. 14.
BCH sees 15% surge
Bitcoin Cash’s price hit $370 on Coinbase, with bulls managing a daily close above $369 and posting a significant 15% gain for the day.
Data from Coinglass shows that BCH bulls benefited from this upward move, as short liquidations exceeded $1 million.
Additionally, open interest surged 26%, reaching more than $236 million.
BCH chart. Source: TradingView
The upside momentum for BCH continued into early Tuesday trading, with the altcoin reaching a high of $386 as Bitcoin hovered above $66,000.
However, some of the gains were pared back amid profit-taking across the market.
With portfolios hitting new highs, investors may be looking to lock in profits, including for BCH.
However, the current momentum could see bulls targeting $400 and higher if they can defend the horizontal resistance zone around $370.
A breakthrough above $500 would allow bulls to target year-to-date highs near $720.
Holding above the support trendline is crucial, as is maintaining price levels above the horizontal resistance.
Bitcoin Cash reached an all-time high of $3,785 on December 20, 2017.
‘Uptober and US election’ sentiment
Bullish catalysts include increased speculation on Donald Trump winning the upcoming US election, central bank monetary policy, and demand from new investors eager not to miss the next bull run.
This “Uptober” sentiment has analysts predicting Bitcoin could surpass its all-time high in the coming months.
Analysts at QCP Capital noted in a Telegram broadcast that during previous election cycles, Bitcoin tended to rally ahead of voting day, followed by a significant upward push in the subsequent two to three months.
“In 2020, BTC was stuck in a boring range for half a year and only started rallying from $11,000 just three weeks before US Election Day, reaching a high of $42,000 by January,” QCP wrote.
The recent inflows of over $555 million into spot Bitcoin ETFs, coinciding with Bitcoin’s price rise, could indicate a similar bullish trend.
Singapore-based digital asset trading platform and market maker QCP highlighted this in its latest insights on Oct. 15.
This outlook suggests Bitcoin Cash has potential for further gains.
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