As a seasoned crypto investor with a keen eye for market trends and a deep understanding of the nuances of various altcoins, I’ve been closely monitoring the recent performance of Bitcoin Cash (BCH). The past four weeks have seen a significant decline in BCH price, with the altcoin hovering around $308 on Friday.
Bitcoin Cash (BCH), the leading offshoot of Bitcoin that prioritizes transactions, experienced a significant decline of over 35% within the last month. Its value settled around $308 during early trading in New York on Friday.
The significant drop in Bitcoin Cash (BCH) prices lately can be largely explained by the start of the Mt. Gox creditor payouts happening today.
Bitcoin Cash Price Performance
As an analyst, I’ve noticed that the mid-cap altcoin, with a fully diluted valuation of approximately $6.4 billion and an average daily traded volume of around $410 million, has been closing below its 200-day Moving Average (MA) consistently. This bearsish trend indicates further potential for price declines. In addition, on the weekly time frame, Bitcoin Cash (BCH) has dropped below a significant support level of roughly $327, suggesting that there may be more weakness to come.
If the price of Bitcoins Cash (BCH) persistently ends its trading day beneath both the 50 and 200-day moving averages, resulting in a “death cross” formation, this bearish sign could cause further declines for BCH, potentially dropping it below $200. Additionally, the distribution of BCH coins from the now-defunct Mt. Gox exchange may dampen recent bullish momentum.
In the 2021 cryptocurrency market surge, Bitcohen (BCH) failed to match other coins’ price gains and only reached its previous all-time high (ATH). This lackluster performance has led some crypto analysts to view BCH as a potential giant ready to awaken, while others label it a “zombie altcoin.”
Based on a technical perspective, the BCH price is anticipated to encounter a robust support zone approximating $221 in the upcoming weeks. If this cryptocurrency fails to safeguard the pivotal support mark of around $327, this level becomes significant. Notably, the support level for BCH price at $221 aligns with the 0.786 weekly Fibonacci Retracement.
Ecosystem Check
In recent years, the Bitcoin Cash community has flourished thanks to the robustness of its proof-of-work (PoW) consensus mechanism. With Ethereum (ETH) having completed its shift from PoW to proof-of-stake (PoS), more miners have been drawn to Bitcoin Cash as a result.
From a researcher’s perspective, I have noticed that the Bitcoin Cash (BCH) community has faced criticism for not embracing the web3 infrastructure and its capabilities, specifically in relation to smart contracts. Consequently, other emerging blockchains like Solana (SOL), Toncoin (TON), and Binance Smart Chain (BSC), have gained more attention due to their support of these advanced features.
Silver Lining
The upcoming three-month distribution of Bitcoins Cash (BCH) by Mt. Gox significantly boosts the wider community. Furthermore, the number of BCH holders is expected to experience exponential growth during the next few months, especially given the current cryptocurrency market’s bullish macro trend.
I believe that the price of Bitcoin Cash (BCH) is poised for a strong rebound to new all-time highs in the near future. This bullish outlook stems from increasing adoption by institutional investors and retail traders alike. The deep liquidity of BCH on various decentralized applications will be instrumental in driving mass adoption during the coming years.
Currently, there are more than 22 million BCH holders with non-zero balances.
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2024-07-05 18:54