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The Bitcoin Cash price relentless rally got supercharged on Monday as investors piled into cryptocurrencies. The BCH token jumped to a high of $800, which was the highest level since May 21. It has risen by more than 105% above its lowest level in July this year.
Cryptocurrencies have a close correlation with each other. In most cases, the movement of Bitcoin prices tend to lead to further gains for other cryptocurrencies.
A good example of this is what happened in May when the BTC price surged to an all-time high of almost $65,000. At the time, other altcoins like Bitcoin Cash, Cardano, and Litecoin all rose to their ATH.
Shortly afterwards, these coins declined sharply after the Bitcoin price tumbled to below $30,000. Now, with Bitcoin comfortably above $51,000, other currencies have all bounced back. For example, Bitcoin Cash has more than doubled in the past few weeks.
This recovery is mostly because of the recent US jobs numbers. The data showed that the economy added about 235k jobs in August, the lowest figure in several months. Therefore, investors believe that the Federal Reserve will likely maintain its dovish stance as officials wait and see.
The daily chart of Bitcoin Cash has a close resemblance to that of Litecoin that we covered earlier today. The chart shows that the coin found a strong support at $390, where it formed a double-bottom pattern. The coin has moved above the 25-day and 50-day moving averages.
It has also moved above the key resistance level at $717, which was the highest level on August 16. Therefore, the coin will likely keep rising as investors target the key resistance at $1000. This price is about 25% above the current level. On the flip side, a drop below $718 will invalidate this view.