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Bitcoin Cash

Bitcoin Cash Price Prediction

By Richard M Adrian | Crypto Info | 7 Feb 2021

Bitcoin Cash Current Trends

Bitcoin cash has hit the $500 resistance and currently trades at $480.  The BCH/USD pair is heading for a breakdown and could crash the price back to $400.  While the fork remains pivotal at $480 , there seems to be another breakdown in favor of $400. 

Bitcoin is presently at number seven among top ranking cryptocurrencies. The coin is Bitcoin’s most significant fork.

During the 2017 cryptocurrency bull run, blockchain developers began to discuss the possibility of a solution for Bitcoin’s scalability issues.  

Bitcoin Cash came as a result of a hard fork that increased the Bitcoin’s block size and allowed for the processing of more transactions. 

Other subsequent hard forks took place in Novemeber 2018 which resulted in Bitcoin Cash SV ( satoshi vision) and Bitcoin Cash ABC. 

The coin derives its name from the original Bitcoin cash client. The introduction of Bitcoin Cash into the market meant a bigger bitcoin block size, quick processing of transactions and a solution to the scalability issue. But how did the developers achieve this? 

Blockchain engineers ensured that the amount of data that needed verification would be smaller. They then increased and made the blocks handling these data bigger.  But the discussion panel failed to come into agreement and therefore they split apart. Therefore causing the hardfork that gave birth to Bitcoin Cash. 

Bitcoin Cash is faster than Bitcoin and handles even a higher capacity of data. The coin is based upon the segregated witness technology (segWit2X) that ensures data which needs to be verified is smaller.

Differences Between Bitcoin and Bitcoin Cash

You might be wondering what sets apart Bitcoin Cash from Bitcoin. Here are the differences. 

  1. Bitcoin Cash charges lower transaction fees ($0.20 per transaction).  A functionality that saves money compared to a Bitcoin blockchain transaction that costs $11 on average.
  2. Bitcoin Cash is fast.  The transaction takes seconds compared to a Bitcoin transaction which could take 10 minutes. 
  3. Bitcoin Cash is designed to handle a bigger block size and a higher number of transactions per second. Hence a huge number of people can transact on the BCH blockchain at the same time. 

The Bitcoin - Bitcoin Cash Controversy on Transaction Fees

Back in April 2020, some bitcoin opponents began voicing their frustrations over Bitcoin’s exorbitant transaction fees. The opponents went on to complain about at least 20,000 transactions that had been charged at least $1000 in transaction fees. While most of these transactions were around the figures of $50, 000 , the fees charged were even higher than traditional payment processing platforms such as Visa. 

Bitcoin transaction fees began to rise in 2017 following the Bitcoin Cash fork. The average transaction fee surged to around $55.  Bitcoiners mentioned they would even pay $15 for transacting $100 worth of bitcoins.

As a result of such high fees, debate began sprouting whether Bitcoin Cash had the ability to hedge against Bitcoin. To date, the debate is still ongoing despite Bitcoin hitting its all time high this year. Bitcoin Cash is built with a structure that favours extremely low transaction fees. The fees are low and the speed is high. The Bitcoin Cash network also processed a larger block size of 8 MB compared to Bitcoin’s 1MB block size. For this reason, Bitcoin Cash proponents believe the fork will stay longer and hedge against Bitcoin in the near future. 

At the time of introducing Bitcoin Cash, most people believed it was better than bitcoin. As a result of media releases and the buzz surrounding, the coin began attracting attention. A situation that subsequently increased its price. 

The coin hit $543 during its launch. About 6 months later, the price skyrocketed to $3,556 and the hardfork attained its all time high in that December of 2017. Around this time, Bitcoin on the other hand was topping charts trading at $20,000.

The Bearish Winter of 2018

As 2018 approached and ushered the year-long crypto winter, Bitcoin cash along with other cryptocurrencies began taking a dip.  All cryptocurrencies were crashing including Bitcoin which plummeted to $5,787. Following this trend, Bitcoin Cash put up its best perfomance and attempted to resist all downward price corrections. However as the months went by, the hard fork coin went back to its debut price.

Around that time, the final quarter of 2018. Developers began discussing the potential of a Bitcoin Cash upgrade.  They wanted Bitcoin Cash to implement a hard fork of its own. So in November , the developers came together and proposed new upgrades. The discussion was to drop off the Bitcoin Cash Chain and jump to the new main chain. However, these also resulted in a split and therefore the creation of Bitcoin Cash rival Bitcoin SV. The debate would go further on and still split another hardfork that resulted in the creation of Bitcoin ABC. 

The height of this debate would further crush the price of Bitcoin Cash to $80.  Setting it up for a new low.  Then came 2019 and the coin witnessed several upside corrections. The coin began playing around the $250 - $310 support levels. Sometimes it would fluctuate but it however remained stable for the whole year. During this time, Bitcoin’s price was pretty unpredictable with occasional price levels between $10,000 and $13,000. 


Bitcoin Cash Current Price Analysis

The simple moving average on  the 4-hour price chart reveals that Bitcoin Cash anticipates its upward resistance at $500. The coin is however likely to restest the middle boundary barrier, however the chances of overcoming the selling pressure are pretty low.  A possibility of losses extending to the $400 support exists in the case the bulls lose the current channel support. 

Nonetheless, the 100 Simple Moving Average seems to be aligning itself as an anchor point to prevent incoming selling pressure. Again, the Moving Average Convergence Divergence seems to be validating a bearish outlook. Hdhhdhd shshhs shhhs shhhs

Closely observe the confluence tool and you will notice two critical levels. A downside support that eyes the $479 price range and a robust resistance around $482 on the one-day 61.8% fibonacci level. 

Prediction: The price of Bitcoin Cash could remain around this range before we expect a breakdown or breakout

Bitcoin Cash and Bitcoin’s Chart Comparison

Presently, its not possible to say Bitcoin Cash is in sync with Bitcoin’s perfomance. Bitcoin is facing a bull run and is currently trading at $36,688 , a level that seems to be the height of Bitcoin’s history. On the hand, Bitcoin cash is still struggling around the $450 support. This is quite interesting because in the past , Bitcoin has laways led the way for Bitcoin Cash. 

Closely, bitcoin surged from 13,000 - $36,500 through the past months. On the other hand, Bitcoin Cash still plays within the same price and faces the same fluctuations as before. However, its worth noting that the coin experienced another fork and is therefore not as strong as the original 2018 blockchain. 

Will Bitcoin Cash go Upwards

There is a possibility of The Bitcoin Cash Blockchain becoming the dominant online payments blockchain. Theoretically, the bitcoin cash blockchain is stronger and more competent than the Bitcoin network. This makes the hard fork a good candidate for competing with Bitcoin’s prices. 

This is not the end of the story. 

The Bitcoin Cash hardfork resulted from one group of developers who wanted to introduce an 8 percent tax on BCH mining activities. The 8 percent tax would be redistributed to the Bitcoin Cash ABC to fund development of the blockchain’s protocols. And because the Bitcoin Cash node was against the tax cut, they received more support from the community and hence got more hashpower. As the winning block thereof, the blockchain is going to receive more attention and push its price further upwards. 

Additionally, Bitcoin cash recieves support from a very committed fan base. Something that is always going to push the price of the coin upwards. 

2021 and Beyond: Looking ahead of the Future of Bitcoin Cash

The current market situation is forcing people to become more vigilant on the perfomance of Bitcoin hard forks.  And like never before, cryptocurrency investors seem to be focused on the price patterns of Bitcoin Cash for the better part of 2021.  Judging from price predictions by leading crypto traders and experts, Bitcoin cash could be headed for a bull run. According to Roger Ver, the price of Bitcoin Cash could double within the following 12 months. This could make the coin head towards the $1000 mark.  However, the expert warned against forking and said it posed great risk for the coin. 

There is however a disadvantage in predicting the price of Bitcoin Cash. The hard fork came into existence only 3 years ago while other coins such as Bitcoin and Ethereum have more than 5 years in existence. These means amounts of data, charts and tables for translating and predicting the future.  Also there have been several events across the world that have prevented the coin from following a natural flow.  Such events include Covid-19 , 2020s stock market crash and the impeachment of President Donald Trump. 

According to Forbes, Roger Ver purchased $25,000 worth of Bitcoins when the coin was selling at $1. Today those bitcoins are approximated to be worth $179,139,250. Since Ver has always been an advocate of Bitcoin and in 2019, he predicted that Bitcoin Cash was going to surpass the market capitalization for Bitcoin.

Nonetheless, there are quite bullish predictions around Bitcoin Cash. Some believe the coin is going to hit $700 by mid 2021 and revisit this price again by the end of the third quarter. Going 2022 and beyond, some predictions are pretty bearish with some fearing the coin could drop towards $252 by January next year. And by the end of 2022, the coin might correct upwards to $375.  The most bearish prediction is Bitcoin Cash might crash to $50 by the year 2023. Which indicates a very negative long term price prediction.

Digital Coin Price analysis however has a positive long term forecast and notes Bitcoin Cash is going to hit $1,138 in 2025 and $1,399 by the year 2026. 

Well should you buy or sell your Bitcoin Cash?

There seems to be innovative solutions developing around Bitcoin Cash. For example, recently The Bitcoin Cash blockchain introduced its supporters to a new platform for microblogging and tipping both readers and writers. The microblogging platform dubbed has quickly become a top forum for crypto focused content among Bitcoin Cash followers.  The application which looks similar to Twitter allows people to craft short texts  and images. This platform also allows users to interact and engage with each other, they can also tip each other. 

If such innovations are going to rise, the utility of the network will also grow and therefore attract the attention of more people. 

The question whether to invest on Bitcoin Cash is however an investor decision. Our role is to offer insight on the prevailing market conditions and analyze the direction of an asset using past and present data. These data usually comes from an asset’s price movement, market capitalization, search volume and socia indicators. 

However judging from long term predictions, I would bet on a price crash for Bitcoin Cash and then an upward correction. For investors with long term plans of upto 5 years, Bitcoin Cash is a sound investment. The direction of the coin in 2022 is however bleak and quite bearish. Tell us in the comment section what your predictions for Bitcoin Cash are and whether you are planning to hold some?  The getaway advice from this post for those people who want to benefit from trading bitcoin cash. Trade Contracts for Difference or CFDs  which will allow you to capitaize on both the bullish and bearish aspects of Bitcoin Cash (or any other cryptocurrency). Such assets allow you to capitalize on long positions when speculating for an asset price rise, or a short position when anticipating an asset price fall. 

At the writing of this post, Bitcoin Cash is trading at $531.

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Richard M Adrian
Richard M Adrian

I analyze bulls and bears in crypto markets

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