Bitcoin Cash is among one of the popular Bitcoin forks that originated with the sole purpose of offering a cheaper Bitcoin variant capable of capturing similar price movement. On paper, it is faster, efficient, and better than Bitcoin, but in reality, people still feel Bitcoin is a superior investment asset as compared to these new cryptocurrencies.
In 2021, there has been a significant rally in BCH as it rallied more than 145% since 1st January 2021. This price action is, however, much smaller as compared to the original Bitcoin. However, BCH ranking among the top 14 cryptocurrencies in terms of valuation speaks volumes about the investor’s trust and prospects it offers. Currently, BCH has a market capitalization of close to USD 15 billion, with less than 3 billion coins to be mined. Once the coins are mined, there will be a severe shortage of fresh supply which can help increase the price of each BCH.
BCH Price Analysis
Bitcoin Cash has created a strong breakout candle on Sunday with a daily captured movement of 8%. While it is not much considering previous one-day moves, this candle rally helped BCH escape a tight consolidation level. There has also been a substantial rise in buying and selling volumes over the last four days.
The BCH rally has converted the resistance line of $715 into near-term support. As of now, Bitcoin Cash is trading 12% above its near-term support and is unlikely to retest the levels. With each candle after the breakout, volumes would increase as a realistic approachable target of BCH has been numbered $1090 as per previous price action and trading patterns. BCH has strong support at $600 and $670, which is also its 200 DMA level. A rising 200 DMA line would project strength in price momentum.
MACD has given a bullish crossover indication on a day before the breakout, which gives some credit to the realistic profit achievable by following such indicators. RSI has returned to overbought zones first seen on 15th August after a break of three months. The realistic targets and achievable targets on Bitcoin cash have a huge difference as these operate strictly under the value gained by Bitcoin. As the mother bitcoin reaches closer to its all-time high by just under 30%, we should expect a ripple effect causing buying in all its forks.
