Bitcoin Cash surges 21.34% as Treasury buybacks fuel crypto risk appetite

Bitcoin Cash rose 21.34% in 24 hours to $263.13 after reaching an intraday high near $270, lifting its market capitalization to $5.28 billion and leaving it ranked 17th. The move followed the US Treasury's announcement that it would double bond buybacks to $4 billion, a step traders interpreted as a soft liquidity injection that weakened the dollar and supported the debasement trade across gold, Bitcoin and altcoins. The broader crypto market gained 6.77%, while Bitcoin rose 7.98%, giving BCH nearly three times Bitcoin's return. US spot Bitcoin ETFs recorded $606 million in net inflows on August 20, adding to risk-on sentiment. BCH also saw $6.77 million in two-hour net inflows into linked positions alongside a Futures Funds Shift alert, pointing to derivatives activity. Technically, BCH broke above the $235-$240 resistance band and is consolidating near $260, while its daily RSI (Relative Strength Index, a momentum indicator) moved above 80, signaling strong but potentially overbought conditions. The key near-term level is $250, close to the seven-day simple moving average near $248. Holding that level could leave the way open toward the Fibonacci extension near $285; losing it could trigger a retest of $235 as leveraged longs unwind. The next 24 to 48 hours will depend on support at $250, RSI behavior, ETF flows, dollar strength and Bitcoin's price action.

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