Last Update: August 5th, 2021

Bitcoin Cash BCH was one of the last cryptocurrency to join the surge in the crypto market, which only started in January this year for this altoin, while for other major altcoins the surge started in early November 2021. BCH bounced from around $ 300 to $ 620 by January 10 and to $775 for Bitcoin Cash by February 15, but that’s still a long way from the $ 4,000 high back in 2017-18. Besides that, while most of the crypto market has taken out January’s high in February, BCH/USD was still trading below $ 600, which indicated that the buying pressure is not as strong, but it caught up further by the middle of February, when we saw the second surge. Although, it gave back nearly 40% of the gains at the end of February. But, the pressure seems to be turning bullish in March again.

Since the coronavirus and the global economic recession, which is still going on in Europe, Cryptocurrencies have earned the status of safe haven assets. But, Bitcoin Cash hasn’t benefited much from this status. It started to turn bullish in January this year, but it has reversed back down, so it is missing out on most of the action. The market sentiment has been positive for the crypto market, but not for BCH apparently.

Bitcoin Cash transactions are cheaper than Bitcoin, since the scalability is higher, making small transactions cheaper, which was the main reason why Bitcoin Cash diverged from Bitcoin in 2017, and BCH plans to increase the block size to allow for faster transactions while lowering fees as well. The competition with Bitcoin has hurt BCH; however, as large institutions, such as Paypal, adopt Bitcoin Cash, the price should eventually go up again to join the rest of the crypto market.

Recent Changes in the Bitcoin Cash Price

Factors Affecting Bitcoin Cash

Right before the surge in Q4 of 2017, Bitcoin Cash diverged from Bitcoin, which was the perfect time, at an initial price of $ 300. It surged to $ 1,000 almost immediately, and by the end of 2017 it had reached $ 4,000. The decline that followed in the crypto market was brutal in the following year too, and at some points Bitcoin Cash ended up below $ 50. As we mentioned, the competition with Bitcoin hurt BCH and the attacks from the Bitcoin community for the split hurt its reputation. This family feud has been hurting the reputation of BCH, which is one of the reasons why this cryptocurrency has remained behind other major cryptocurrencies, despite it being among the top 5 cryptos in terms of market capitalization.

Since 2018, the trend has been slightly bullish overall, and we did see a surge earlier this month, which was encouraging for buyers, who hoped that Bitcoin Cash would join the rest of the crypto market in the surge, after breaking the long-term resistance at $ 500. But that didn’t happen, and the price has returned back within the range, although that move is a sign that BCH is alive, and it has actually made some decent gains, doubling in value in several months.

Bitcoin Cash Live Chart

Bitcoin Cash started as a hard form of Bitcoin BTC in 2017, after a number of BTC users expressed concern that Bitcoin was diverting from Satoshi Nakamoto’s whitepaper goals for Bitcoin. Since then, BCH has been in competition with Bitcoin as a result, and this has hurt its reputation. As we know, Bitcoin has some scalability problems, especially after the recent gains in the price, which took it to $ 40,000 at some point. Bitcoin decided to develop the Segregated Witness, SegWit2x, to solve the transaction problems, but a number of Bitcoin holders didn’t think that this would take care of the issue, so they created Bitcoin Cash and branched off on their own, increasing the block size to 8 MB from the previous 1 MB, and promising to adhere to Satoshi Nakamoto’s whitepaper aims.

However, this didn’t work out well for BCH, after the surge above $ 4,000 at the end of 2017, which was a result of the “gold rush” on cryptos, which pulled BCH higher too. Since then, the competition with Bitcoin has hurt Bitcoin Cash. BCH is also being used as a means of payment by certain companies, such as Sequoia Holdings, according to Roger Ver, which is giving its employees the option of receiving part of their salary in cryptocurrency – an indication that BCH is popular among the staff. But the BCH team will have to keep increasing the scalability and transactions will have to remain cheaper to make BCH even more popular for small transactions. This means that the main element in Bitcoin Cash’s potential for success will be whether users decide that directly increasing the block-size is more effective than SegWit. At 11.000 transactions per second (TPS), BCH’s transaction speed is faster, and it will increase even further, as Bitcoin Cash aims to increase the block size to 32 MB.

The adoption of BCH is also increasing; the team at Bit.com, a secure, “high-performance” cryptocurrency derivatives exchange, will reportedly be offering Bitcoin Cash (BCH) perpetual swaps and options. K.IM  Dotcom is also adopting BCH for payments. The team said that while Bitcoin (BTC) is great for asset storage, Bitcoin Cash is great for payments for services like K.IM. However, the competition with Bitcoin has led to attacks on Bitcoin Cash, which have hurt its reputation. As we mentioned above, this has been one of the main reasons for BCH not benefiting as much as it should have from the recent surge in the crypto market in the second half of 2017.

Bitcoin Cash is trading with a bearish bias at $497, having violated the support level of $714 level on the monthly timeframe. For the moment, this level is working as resistance for BCH/USD coin. Below this, the odds of a selling trend continuation remain pretty high. On the monthly timeframe, the double bottom pattern is likely to provide support at the $70 level once the $398 support level is violated. 

On the higher side, the resistance stays at $700 and $1070 level that’s been extended by 23.6% Fibonacci retracement levels. A bullish breakout of the $1065 level can drive additional buying until the $1,695 and $2160 levels are extended by 38.2% and 50% Fibonacci retracement levels.

Bitcoin Cash (BCH) – Monthly Chart – Bearish Bias Dominates

On the monthly chart, BCH/USD has been trading bearish at the $499 level. However, the leading indicator like MACD and RSI are entering into the buying zone. Therefore, the odds of a bullish correction can remain strong in the coming months. Besides, the BCH/USD coin is trying to close the hammer pattern, if this happens, there will be a strong bullish trend in BCH/USD coin. 

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Bitcoin Cash Crossing Over 50 MA – Weekly Chart

On the weekly chart, the Bitcoin Cash is trying to crossover the 50 periods moving average at $499 level. Closing of weekly candles above 50 MA is likely to drive additional buying trends in the BCH coin. On the higher side, the immediate target remains $715 and $1065 level. Whereas, a bullish breakout of these levels can lead BCH price towards $1678 and $2174 levels. Good luck.

Updated: Aug 05, 2021