Bitcoin Cash Halving Successful — BCH Price Up 13% But Can It Climb Higher?
Price spiked by 19% but can it continue?
Key Takeaways
- BCH surges over 10% post-halving, hitting a peak since May 2021.
- Halving reduces mining reward, impacting network and price dynamics.
- Potential for future BCH rally, targeting a $1,100 peak.
Following the recent network halving, Bitcoin Cash (BCH) experienced a significant price increase, rising over 10%. This was part of an ongoing positive trend, with BCH seeing a 23% gain in the past week and a 43% increase over the last month, reaching its highest price point since May 2021.
But does BCH have the potential to increase more or was this price spike just a temporary reaction?
BCH Halving
The surge is largely because of the halving event and prevailing optimistic market sentiments. Bitcoin Cash, a proof-of-work blockchain split from Bitcoin in 2017 aiming for quicker, cheaper transactions, has struggled with widespread adoption within the crypto community.
The latest halving, which occurred at block 840,000, cut the mining reward to 3.125 BCH per block, down from the previous 6.25 BCH. This reduction in block rewards should have made a substantial impact, demonstrated by a significant slowdown in block production immediately following the halving.
Despite this, the network has continued to operate, confirming blocks and adjusting to a higher mining difficulty level, the most challenging since 2019. Meanwhile, the average miner’s reward has decreased, marking a pivotal moment in the network’s economic dynamics.
Bitcoin Cash (BCH) Price Analysis
Between July 2022 and June 2023, BCH’s price oscillated between $88 and $152 before witnessing a significant rally that suggested a bullish trend was on the horizon. This bullish sentiment was confirmed when it surpassed a critical resistance level at $300, moving beyond the descending trendline that had previously capped its value.
By April 1, BCH soared to $700, marking a remarkable 660% rise from its low point of $88. This peak is considered part of the third wave in a predicted five-wave pattern. However, it still falls short of the $1,600 peak in May 2020.
The current analysis, supported by the wave pattern and the RSI (Relative Strength Index) on the daily chart, indicates a potential pullback for BCH. This corrective phase could stabilize the price, with a near-term forecast suggesting sideways movement toward $490.
Should BCH follow this projected path, it would signify a consolidation phase, setting the stage for a subsequent rally. The anticipated next peak, forming the fifth wave of the sequence, is targeted at $1,100, signaling continued bullish momentum.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only. It should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints. They should also be familiar with all local regulations before committing to an investment.
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