2023-7-4 09:33 |
Bitcoin Cash price has done well in the past few weeks as it transitioned into the 14th biggest cryptocurrency in the world. It jumped from last month’s low of $91.80 to the year-to-date high of $328.26. It jumped by over 260% between its lowest and highest point in June.
BCH halving aheadThere were three main catalysts for Bitcoin Cash price in June. First, it jumped as several financial heavyweights applied for a spot Exchange-Traded Fund (ETF) in the US. These companies included firms like Blackrock, Fidelity, Invesco, and Cathie Wood’s Ark Invest.
While the ETF applications was on Bitcoin, analysts believe that BCH could benefit as well. For one, if the BTC fund is accepted, it will open the possibility of ETF proposals for other proof of work coins like BCH and Litecoin. That’s because the two coins emerged as a fork of Bitcoin and are not classified as securities.
Second, Bitcoin Cash price jumped because of the upcoming halving, which is scheduled for December. Halving is a period when block rewards in a proof-of-work network are reduced by half. It plays an important role in moderating supplies. Historically, cryptocurrencies tend to rally ahead of a halving event.
As a result, key Bitcoin Cash metrics improved in June. Bitcoin Cash’s hashrate jumped to 3.77 EH/s in June, the highest level since May 2021. Hash rate is an important metric that measures the health of a network. Bitcoin’s mining difficulty has also jumped to 476.54 G, which is its all-time high. Its mining difficulty started the year at 203 G.
Third, BCH price soared because of fear of missing out (FOMO) in the market. As its price surged more investors moved into the coin to avoid being left behind.
Bitcoin Cash price predictionBCH chart by TradingView
The BCH price made a spectacular comeback in June as demand for the coin soared. As it rose, it managed to move above the important resistance level at $164.40, the highest level in July last year.
Bitcoin Cash price has jumped above the 50-day and 100-day moving averages, which is a positive thing for the coin. It also seems to be forming a bullish pennant pattern, which is usually a bullish sign.
However, it has also become severely overbought, with the Relative Strength Index (RSI) sitting at 80. Therefore, there is a likelihood that the coin will have a pullback in the coming days as sellers target the key support level at $250, which is about 15% below the current level.
The post Bitcoin Cash price overbought as mining difficulty, hash rate jumps appeared first on Invezz.
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