The Bitcoin (BTC/USD) and Bitcoin Cash (BCH/USD) price strong rally accelerated after a series of positive news about digital currencies. Bitcoin rose to more than $39,000 while Bitcoin Cash rose to more than $500. The two have a market cap of more than $719 billion and $9.53 billion, respectively.
Catalysts for Bitcoin and Bitcoin Cash surge
Bitcoin and Bitcoin Cash prices rallied during the weekend after several catalysts. First, the number of Covid cases rose globally, with many countries now considering more restrictions. In the United States, Anthony Fauci said that the Biden administration was considering adding a new mask mandate even among the vaccinated. Other countries like Germany and France are considering these restrictions.
In theory, a resurgence of the virus ought to be bad news for cryptocurrency prices. Still, there is a positive side to the situation. That’s because the resurgent cases will push more central banks to have a wait and see attitude before they start tightening.
In fact, the US bond market is pricing in prolonged easing as the cases rise. The 10-year bond yield has dropped to 1.245% while the 30-year yield has declined to 1.88%. The Fed will start its meeting on Tuesday and deliver its final verdict on Wednesday.
Second, the BTC and BCH prices are rising as investors return to the crypto industry. This is evidenced by the total volume in leading exchanges. Data compiled by CoinMarketCap shows that the total volume has surged in the past few days.
The 24-hour volume in Binance rose by more than 63% to more than $25.7 billion while that at Coinbase rose by more than 116% to more than $3.5 billion. Similarly, the spot volume in Huobi and Kraken has jumped by more than 100% in the past 24 hours. The same trend has happened in the leading DEX exchanges like Uniswap, PancakeSwap, and MDEX.
Third, the Bitcoin price is jumping after the recent positive news from Elon Musk who reiterated that he was still long the coin. Further, there are rumours that Amazon will start accepting Bitcoin by the end of the year.
Bitcoin price analysis
Bitcoin Price chart
The daily chart shows that the BTC price has been forming a falling wedge pattern. In technical analysis, this pattern is usually a bullish signal. It moved above the upper side during the weekend in a high-volume environment. It has also moved above the 50-day and 100-day moving averages. Therefore, there is a possibility that the Bitcoin price will jump above $40,000 soon.
Bitcoin Cash price prediction
Bitcoin Cash price chart
The daily chart shows that the Bitcoin Cash price formed a double-bottom pattern at $382. Its neckline was at $546. On Monday, the coin moved to the 78.6% retracement level. Unlike the BTC price, it remains below the 50-day and 100-day moving average. Therefore, the coin will likely break out higher as investors target the next key support at $747, which is along the 61.8% retracement level.
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