Bitcoin Cash Surges 30%... Bitcoin SV and LayerZero Also Jump, Signaling the Start of 'Altseason'?

Bitcoin Cash Surges 30%, Reclaiming $300... Could it Be the Start of Altseason?

▲ Bitcoin Cash (BCH)/Source: Twitter ©CoinReaders

Bitcoin Cash (BCH) surged about 30% in a single day, reclaiming the $300 mark, followed by strong upward momentum from Bitcoin SV (BSV) and LayerZero (ZRO). As signs of capital shifting from major cryptocurrencies to altcoins emerge, technical indicators point to both further upside potential and short-term overbought pressure.

According to investment media FXStreet on September 23 (local time), Bitcoin Cash surged approximately 30% the previous day, reaching a three-month high after the Chicago Mercantile Exchange (CME) Group announced the listing of BCH and Uniswap (UNI) futures. BCH traded near $340, surpassing its 50-day exponential moving average (EMA) of $247, 100-day EMA of $257, and 200-day EMA of $309. It also recovered the 50% Fibonacci retracement level of $297 from the decline between $489 and $181, with the next upside targets set at the 78.6% retracement level of $395 and the psychological resistance of $400.

However, Bitcoin Cash's daily Relative Strength Index (RSI) rose to 77, entering the overbought territory. The Moving Average Convergence Divergence (MACD) and its positive histogram are both rising above the zero line, indicating strong momentum is being maintained. In case of a correction, the 200-day EMA at $309 is the first support level, with $297 proposed as the next defense line below that.

Bitcoin SV also rose to its highest level of the year, coinciding with the news of CME's Bitcoin Cash futures listing. BSV surged approximately 20% the previous day and an additional 8% on Wednesday, significantly outperforming its 50-day EMA of $16.46, 100-day EMA of $15.56, and 200-day EMA of $15.85. The next resistance level is the 161.8% Fibonacci extension at $23.84; a decisive break above this could set the 200% extension at $27.89 as the next target. However, with the RSI exceeding 81, the rally has become excessively extended, increasing the likelihood of a short-term correction.

LayerZero maintained its four-month high around $1.3920 after rising approximately 18% the previous day. ZRO is also continuing its upward structure, trading above its 50-day EMA of $1.0435, 100-day EMA of $1.0460, and 200-day EMA of $1.1925. It is currently testing resistance at the May 21 high of $1.3950, and a break above this would set $1.7740, the March 2 low now turned resistance, as the next target. The RSI is around 75, indicating an overbought condition, but the MACD is rising in positive territory.

All three assets are technically showing strong upward trends, trading above their major moving averages, but with RSIs soaring to 75-81, short-term overheating pressure has increased. FXStreet analyzed that the movement of funds from major cryptocurrencies to altcoins suggests the possibility of an early altseason. For Bitcoin Cash, a break above $395-$400, for Bitcoin SV, $23.84, and for LayerZero, $1.3950, were presented as key price levels that would determine further gains.

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