Bitcoin Cash Halving Approaches with BCH Reaching Highest Price Since 2021

Bitcoin Cash
While Bitcoin experiences a downturn today, Bitcoin Cash, the forked cryptocurrency, is showing remarkable performance ahead of its own halving, reaching its highest price since 2021.

Bitcoin Cash, which emerged from a contentious fork of Bitcoin in 2017, is grabbing attention as its value surges to levels not seen in nearly three years. Over the past 24 hours, the coin has surged by 5%, marking an impressive 28% increase in the last week and a notable 43% rally in the past month, according to data from CoinGecko.

Today alone, BCH soared from slightly above $600 to a peak of about $697, before settling at its current price of $635. This peak represents the highest price point for BCH since November 2021, although still considerably below its all-time high of nearly $3,786 recorded in December 2017.

The recent surge in BCH’s price can be attributed to several factors.

Anticipation for the upcoming Bitcoin Cash halving, set to happen in just two days, has boosted bullish sentiment. The halving event, which slashes block mining rewards by 50%, is expected to curtail inflation and increase the coin’s scarcity. Historically, such events have led to significant price hikes, mirroring Bitcoin’s own performance post-halving.

While Bitcoin’s halving is set for April 20, both BTC and BCH share the same block height for their halvings. However, due to a change in the mining algorithm, BCH’s halving date differs. BCH is currently slated for halving on April 3, with Bitcoin Satoshi Vision (BSV) scheduled for September 8 and Bitcoin Gold (BTG) on April 23.

Secondly, BCH has regained attention following the release of a book by Roger Ver, an early BTC evangelist turned leading figure in the BCH space. This has reignited debates about the principles behind Bitcoin Cash and Bitcoin. Although Ver declined an invitation from Blockstream CEO Adam Back to abandon BCH and join Bitcoin, the exchange has sparked discussions and potentially introduced BCH to new audiences.

From a technical standpoint, Bitcoin Cash’s positive performance contrasts with broader market trends. While Bitcoin struggles to surpass $71,000 and retraces below $69,000, BCH stands out as the best-performing coin among the top 40 by market cap.

Bitcoin Cash’s bullish trend isn’t merely short-lived. The cryptocurrency has more than doubled in price since the beginning of 2024. This surge was particularly fueled by a significant bullish spike on March 3, when prices surged by 57.93% from $316.4 to $500.

Technical indicators also support a strong bullish trend for BCH. The widening gap between the 10-day exponential moving average (EMA 10) and the 55-day mark (EMA 55) suggests that short-term traders are driving prices upward. The Average Directional Movement (ADX) at 29 indicates a robust bullish trend, while the Relative Strength Index (RSI) at 70 points to clear bullish sentiment among traders.

However, the current candlestick formation suggests a minor correction in prices. If this trend persists, the immediate support level to test is around $567, as set by the EMA10, indicating a potential 16% drop, or around $470 in a longer timeframe— which would be a healthy market correction without nullifying the bullish outlook in the short term. Conversely, if the upward trend continues, BCH could be aiming for a zone between $730 and $790.

Also Read: Crypto Investment Trends: Insights from March 2024

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