Bitcoin Cash Surges 24% as Traders Rotate from Zcash, Fueled by ETF Expectations

Bitcoin Cash (BCH) has emerged as the top performer among the top 25 cryptocurrencies, rallying 24% in the last 24 hours. This surge occurred as Bitcoin pushed toward $94,000, improving overall market risk appetite. However, the gains were selective, with a notable rotation away from the privacy coin sector.

Traders are taking profits on Zcash (ZEC), last month's top gainer, which fell 7% despite the broader market rebound. Capital is flowing into BCH, Monero, Dash, and Beldex instead. This shift reflects traders reducing exposure to overextended ZEC positions and reallocating toward lagging peers.

Data from Coinglass shows BCH is trading positively across all major timeframes: up 9.94% in 24 hours, 12.87% over seven days, and 10.73% over 30 days. This indicates a persistent accumulation trend developing over weeks, rather than a short-term reaction to Bitcoin's December rebound.

A central catalyst for BCH is Grayscale's filing with the SEC on September 10 to convert its Bitcoin Cash Trust into a spot ETF. Approval is expected to unlock institutional-grade inflows. The trust, trading under ticker BCHG and launched in 2018, already holds $214 million in assets under management as of December 2.

Bitcoin Cash has a history of institutional appeal in the US. In June 2023, EDX Markets—an institutional trading platform backed by Charles Schwab, Fidelity Investments, and Citadel Securities—launched offering trading for only four cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). This selective inclusion signaled institutional confidence in BCH as a commodity, especially when other altcoins faced SEC securities charges.

From a technical standpoint, BCH trades at $595, well above its 50-day Simple Moving Average (SMA) of 516.7 and 100-day SMA of 515.3. The narrow gap between these SMAs suggests a potential golden crossover if BCH sustains closes above $600. The Relative Strength Index (RSI) is at 62.25, indicating constructive momentum without exhaustion. The positive Volume Delta confirms participation levels match the price move.

Analysts forecast a continued rise toward the next resistance level at $625.90, which is the target for the completion of the active short-term impulse wave. Key support lies near the 7-day SMA at $545, with a break below potentially triggering a deeper retracement toward the 50-day SMA.