Well, today officially wraps up the first half of the year 2021. As we head into the second half, it's clear that there's still a lot of fear of a crypto bear market. Let's take a look at Bitcoin Cash:
As you can see, we are actually heading toward a technical death cross - which sounds a lot scarier than it is. This "cross of death" occurs when the 50 day moving average (purple line) crosses below the 200 day moving average (blue line). This is generally seen as a bearish indicator and can indicate a major upcoming sell-off.
But who cares? Bitcoin just experienced a technical death cross last week and is still holding its own -- currently at $34,339.16 at the time of this writing and well above the 31k support line.
Another important dataset to watch during a death cross is average volume. As we can see, it appears to be picking up for Bitcoin Cash:
So the data does appear to be pointing toward a bearish decline for BCH. But I once again ask, who cares? I suppose if you're trading it, then you care. But for me, as one who just accumulates as much as possible, I see this as an opportunity to acquire more for a cheaper price. Although the crypto is off its all-time high of $1,528.42 seen on May 6, 2021 -- BCH is still up 54.3% from the beginning of 2021.
What will the second half of 2021 have in store for Bitcoin Cash? I don't know. As adaptation continues, however, I can only imagine its value increases over the years. What's great about BCH is the ease of use for spending it. Just like Bitcoin, you can browse a list of merchants that will accept the crypto as payment.
Personally, though I haven't tried to yet, I can see myself using my BCH occasionally to order food from local resaurants. Via Menufy (a restaurant ordering system) there are actually 11 restaurants within 2.5 miles of me that will accept it as payment. Pretty cool!
In my view, the ultimate validation of any cryptocurrency is its utility as payment for goods and services. After all, what is a cryptocurrency if it can't be spent? For me, I like it as a long-term store of value.
For more information - check out What is Bitcoin Cash?
