Bitcoin Cash Soars to Double Digits!
Daniel Jimenez, an engineer and a passionate Blockchain and Bitcoin follower, explains the reasons why Bitcoin Cash has succeeded in reaching two digits
Undoubtedly, the crypto asset market is experiencing one of its best moments in months. The stampede of Bitcoin (BTC) prices and its altcoins have resulted in excellent gains for those long-term investors.
That is the case of Bitcoin Cash (BCH) that can be seen through its price increase, which opened at a rate of 25.79% at the time of writing this article and does not seem to be reaching a limit for the moment. BCH is trading above $210 and its capitalization market has soared to $3.7 trillion dollars, to stay in the sixth place of the general ranking.
For the short term, BCH presents a ceiling of $215 that it seems to be able to meet without any problem in the next hours, provided that the optimistic environment continues. The Exponential Moving Average 25 (EMA 25) indicator has made a bearish crossover projected for the next 10 hours.
The Aroon indicator remains bullish, although it gives signs that there may be a possible correction around the corner.
The Chaikin Money Flow (CMF) stays at a good level, which indicates that there is a good flow of money into the BCH ecosystem.
The Moving Average Convergence Divergence (MACD) has made a bullish crossover alongside the Bitcoin rally, although it has already distanced from the moving midline to project itself a little less optimistically in the short term.
Regarding the mid-long term horizon, BCH has a strong bullish trend, as a pronounced upward channel has been created for the cryptocurrency, with R1 levels at $224 and Support levels at $159.89.
The Parabolic SAR (Stop and Reverse) is completely bullish, drawing the trend lines below the prices in the candlestick chart.
The Bollinger Bands are shown less contracted, synonymous with the strong volatility of the ecosystem, and they indicate with the breaking of the last candlestick above the upper band that it is the best entry moment.
The Stocastico indicator is also bullish and it shows sustained overbought levels.
In conclusion, the short-term horizon is precautionary, with possible price corrections, but the scenario for BCH in the long-term seems promising; that is, very bullish.
The History behind Bitcoin Cash
Bitcoin Cash emerged on August 1st, 2017, when Bitcoin got a hard fork. There have been many BTC forks, of which BCH remains the most recognized.
It was developed to increase the size of the BTC block, which would allow conducting more transactions within each block. At the same time, more transactions could be processed in a shorter period of time at lower rates.
This seemed like a reasonable solution to the scalability problem that has plagued BTC since its creation. However, there were many who believed that this cryptocurrency should not change.
There is evidence that supports their claim: BTC still has the highest market capitalization and remains the most dominant despite its many forks.
In contrast, BCH experienced a hard fork in 2018, about a year after the first BTC fork produced losses in the market prices and capitalization. Besides, Bitcoin Lightning Network promises another solution to the scalability problem, which could make BCH a redundancy.
By Willmen Blanco