- Bitcoin Cash has been a sideways market for months now but still sits among the top 5 cryptocurrencies on Coin Market Cap
- BCH is busy in the news – an anti-climatic halving day that halted its network, a good sign for institutional adoption, and fears of another chain split
- Price predictions vary but there is consensus that the altcoin has a bright future
As of this writing, Bitcoin Cash (BCH) is trading at ~$314 USD with a market cap of $5,804,808,404. The coin has not seen many drastic movements since its hard fork chain split in November 2018. BCH still struggles to recover from the split, which brought the coin to an all-time low. Still, BCH is in the top 5 cryptocurrencies on CoinMarketCap.
In this article, we’ll cover BCH’s recent movements, news coverage, and where we see the altcoin going in the future.
Recent Price Action for Bitcoin Cash
BCH has failed to break out of 2019 highs, although it came close in February 2020 when it was trading just short of $500. However, that didn’t last. BCH took a nasty tumble this past March with a nosedive to $152. The COVID-19 pandemic can likely explain such a fall as the virus outbreak halted world economies in mere weeks. Crypto markets were no exception.
Halving days typically bring out the bulls but BCH flatlined somewhat. The immediate effects were promising; BCH surged 11% to $277.22 on April 8. However, the price crashed to $262 an hour later.
Within 24 hours, BCH’s hash rate and block generation took a hit. Various sources saw its hash rate drop as much as 60% to 1.6 EH/s. The time it took to mine a new block ballooned from the usual ten to twenty minutes to up to two hours. However, block generation quickly returned to its ~10-minute average.
Note the February 2020 highs and March 2020 lows.
Bitcoin Cash evangelist Roger Ver doubted that the halving event would have a serious impact on price, calling it a non-event. He wasn’t wrong.
In more recent news, the first half of July saw BCH drop over 8%. This movement could be explained by the recent Bitcoin Twitter hack. Weeks ago, someone posted scam messages on the accounts of Elon Musk, Kanye West, Bill Gates, and Joe Biden, among others, promising a 2:1 return. Victims reportedly sent ~$118,000 worth of Bitcoin to the posted address.
Such an event scares people away from cryptocurrencies. And Bitcoin Cash tends to follow Bitcoin movements, anyway. However, BCH seems to have recovered.
Mass Adoption News
Despite Bitcoin’s bad press, Bitcoin Cash has seen encouraging news coverage lately.
Roger Ver tweeted a video of a vending machine in Hong Kong accepting BCH instead of BTC. Although, YouTube influencer and crypto trader Tone Vays was suspicious of the video, believing Ver paid for the vending machine to prefer BCH over BTC. Ver denies the claim.
Regardless of any machinations, vending machines accepting any cryptocurrency help show that digital currencies can be used as a payment option.
And in the middle of July, Grayscale Investments announced that the Financial Industry Regulatory Authority (FINRA) approved two of its cryptocurrency trusts for public quotations – Bitcoin Cash Trust and Grayscale Litecoin Trust.
Grayscale Investments currently offers 10 investment products with $4.1 billion USD of total assets under management (AUM). As of July 20, Bitcoin Trust’s AUM was $3.554 billion and Bitcoin Cash Trust was $6 million.
Factors Influencing BCH Price Prediction
The troublesome news is that crypto heads are worried about BCH enduring another chain split. There are just three months until the next Bitcoin Cash upgrade and tensions are rising over the Difficulty Algorithm Adjustment (DAA) discussion, which adjusts the mining difficulty. The dust never settled from last year’s Infrastructure Funding Proposal (IFP) debate.
People walked out of a BCH developer meeting on August 3.
Despite this fear, people are generally optimistic about BCH. The coin has been consolidating for months now, making people bullish on its potential for a breakout.
July paved the way for a peak of ~$330 on August 1 but crashed back down to ~$280 within 24 hours. Since then, BCH has broken through the ~$280 resistance level and has not gained much momentum beyond that. However, it’s current price looks promising.
BarChart pins BCH’s two resistance levels at ~$339 and ~$327 and support levels at ~$294 and ~$274. Others are more cautious, pegging support levels at ~$220 and ~$200. The ~$220 price was a yearly open for the coin.
At the end of July, Coin Telegraph pegged BCH’s RSI at 80, and BCH has seen a pullback as a result.
Yet, BCH’s recent upward trend could send the coin as high as ~$330 resistance. This was a price range at which BCH traders consolidated a number of times throughout 2019.
Keep in mind that BCH can be volatile since it generally follows BTC movements. That said, Crypto Rating thinks Bitcoin Cash will reach ~$560 by year’s end. Their long-term forecast sees the coin reaching ~$4500 by 2025.
Digital Coin Price’s forecast is aligned with Crypto Rating’s short-term opinion but thinks it’ll climb to ~$1100 by 2025. And Smartereum thinks BCH has the potential to reach ~$6700 by the end of 2021 and ~$10,000 by 2025. Here are more forecasts, both positive and negative.
Traders may want to soon get in on BCH’s upwards trajectory. Sure, it’s been a sideways market for some time now but its price has been steadily climbing. We’ve had to update price forecasts a few times throughout this writing.