Last updated on May 18th, 2024 at 12:47 pm
Cryptocurrency enthusiasts are buzzing with excitement as Bitcoin Cash (BCH) experiences a remarkable surge in price, reaching its highest point since 2021. The coin’s value has skyrocketed by 5% in the last 24 hours, an impressive 28% over the past week, and a substantial 43% rally in the last 30 days, according to Coinstats.
BCH Price Surge
In a dramatic turn of events, BCH soared from slightly above $600 to a peak of around $697 today, marking its highest price since November 2021. Although it remains significantly below its all-time high of nearly $3,786 achieved in December 2017, the recent surge has reignited optimism among investors.
Factors Driving the Rally
Several factors have contributed to the bullish sentiment surrounding BCH. Firstly, anticipation is building around the upcoming Bitcoin Cash halving, scheduled for two days. The halving event, which slashes block mining rewards by 50%, is expected to curb inflation and increase the scarcity of BCH. Historically, such events have triggered substantial price hikes, mirroring Bitcoin’s post-halving performance.
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Interestingly, BCH’s halving date differs from that of Bitcoin (BTC) due to a change in the mining algorithm, resulting in separate schedules for the two cryptocurrencies. While BTC’s halving is set for April 20, BCH is poised to undergo its halving on April 3, adding to the anticipation in the crypto community.
Return to the Spotlight
Moreover, BCH has returned to the spotlight following the release of a book by Roger Ver, a prominent figure in the cryptocurrency space. Ver’s book has reignited debates surrounding the ethos of Bitcoin Cash and Bitcoin, with some seeing it as an opportunity to introduce BCH to a wider audience. Additionally, an invitation from Blockstream CEO Adam Back for Ver to transition back to Bitcoin has stirred discussions and potentially introduced BCH to newcomers.
BCH Technical Analysis
Despite the overall market trends, BCH has defied expectations with its positive performance. While Bitcoin retraces below $69,000 after failing to breach $71,000, BCH stands out as the best-performing coin among the top 40 by market capitalization.
From a technical perspective, BCH’s bullish trend appears robust. The widening gap between the 10-day exponential moving average (EMA 10) and the 55-day mark (EMA 55) suggests strong momentum from short-term traders. The Average Directional Movement (ADX) at 29 indicates a firmly bullish trend, with the Relative Strength Index (RSI) at 70 reflecting widespread bullish sentiment.
Outlook and Potential Corrections
While today’s candlestick formation hints at a potential price correction, BCH’s immediate support level lies around $567, as indicated by the EMA10. A more significant correction could see prices dip towards $470 in the longer term, which could be viewed as a healthy market adjustment without jeopardizing the bullish outlook.
Conversely, BCH could target a price range between $730 and $790 if the upward momentum persists, signaling further gains ahead.
READ ALSO:Â SEC $2 Billion Demand May Lead to Massive 3.1 Billion XRP Dump
Bitcoin Cash’s remarkable surge ahead of its halving event has captivated the cryptocurrency community. With bullish sentiment prevailing and technical indicators pointing towards further gains, BCH enthusiasts eagerly anticipate how the coin will fare in the days to come.
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