Bitcoin Cash surges 40% to eight-month high on strong buying pressure

Bitcoin Cash (BCH) has recently demonstrated significant bullish momentum, reaching an eight-month high of $522.40. This surge is driven by increasing buying pressure, as indicated by the BBTrend and Smart Money Index.

The BBTrend, which measures the strength and direction of a trend based on the expansion and contraction of Bollinger Bands, currently sits at 9.4. This reading suggests that the bullish trend is strengthening, with growing buying pressure and investor demand for BCH. The green histogram bars on the daily chart have been steadily increasing in size, further confirming this bullish outlook.

Additionally, the Smart Money Index (SMI) for BCH supports this positive sentiment. The SMI, which tracks the activity of experienced or institutional investors, has climbed over 220% since June 5, reaching 85.1. This indicates that key investors are increasing their buying activity, signaling growing confidence in the asset.

If this bullish momentum persists, BCH could target $556.40. However, there is also a risk of profit-taking, which could pull the price down to $490.80 or even lower to $444.70. Traders should monitor these key levels to assess BCH's next directional move in the volatile crypto market.

In summary, Bitcoin Cash's recent surge is underpinned by robust technical indicators, reflecting strong buying interest from both retail and institutional investors. While the outlook remains bullish with a potential target of $556.40, traders should remain cautious of possible corrections if profit-taking intensifies.