Sellers pounce after 21% BCH spike

Bitcoin Cash price is down 5% on the day after rising 21% on Tuesday as Grayscale news helped push BCH to above $228. 
Sellers could push the altcoin’s price lower amid broader market’s profit taking deals.

Bitcoin Cash (BCH) was one of the biggest gainers Tuesday after crypto surged on news of Grayscale’s court victory against the US Securities and Exchange Commission (SEC).

Bitcoin Cash paring gains after huge spike

BCH rose to $228, rising a notable 21% on the day as the market repriced news of a Bitcoin ETF approval. The altcoin ended the day 18% up. Santiment shared the chart below showing BCH led the crypto spike.

📊 After the news of #Grayscale’s victory over the #SEC quickly lifted #crypto markets, the biggest notable beneficiary actually has turned out to be #BitcoinCash, due to its increased exposure. This phenomenon was similar to what we saw in mid-June when the #ETF news was first pic.twitter.com/HzEEEqZqIt

— Santiment (@santimentfeed) August 29, 2023

Bitcoin Cash is however trading 5% down on the day as can be seen in the chart below. Sellers appear to be taking control after rejection at the critical horizontal level that also marked the point of further downward moves in mid-August.

The daily chart shows price is above the 100 SMA, which provides support near $198. The daily RSI is also still above the 50 mark. However, it’s beginning to slant to suggest possible selling pressure. Key price levels to watch are $183 and $252.

At the time, BlackRock-fueled positivity sent Bitcoin to above $31k and Bitcoin Cash rose to above $329 – partly driven by the unveiling of Fidelity-backed crypto exchange EDX Markets. BCH was one of four crypto assets EDX Markets supported.