BCH Drifted Out Of The Top 10 Crypto List – Best Time To Buy?
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Bitcoin Cash (BCH) is an early hard fork of the original Bitcoin blockchain. It can be considered as both an investable cryptocurrency and a payment network. Before getting into the price details, let’s understand the purpose behind the formation of BCH.
Forks are common within the Bitcoin network and other cryptos as well. Typically, significant miners or investors come to a common consensus on which blockchain to use. Only when both parties fail to be on the same page, a new cryptocurrency is created. That’s exactly what has happened with Bitcoin Cash.
A significant group of miners and investors thought Bitcoin was heading in a direction that is way different from the path outlined by the creator of Bitcoin – Satoshi Nakamoto. They stated that the primary purpose of Bitcoin is not being served, which is to be ‘digital cash’ and a potential alternative to fiat currencies. Therefore, Bitcoin Cash was created and designed to work more like a currency or a medium of exchange than just being a store of value.
As a result of this, Bitcoin Cash was born in the mid of 2017 with an impressive price of $900. Its all-time high value is around $4000; this happened during the crypto boom of December 2017 when the BTC price was ~$20k.
Contrary to the fundamental purpose behind the formation of this coin (which is to be more of a functional currency), crypto fans find BCH as one the most reliable coins to invest in. Expert predictions about the BCH future are pretty optimistic, but the recent events didn’t turn out well for this crypto.
What Made BCH Price Recede In The Recent Past?
BCH never completely recovered from the hard fork and its bitter split with BSV in November 2018. Still, this crypto managed to stay in the list of top 10 cryptos by market capitalization until the mid of Feb 2021. The recent news of the Indian governments’ decision to ban cryptocurrencies has impacted the price of BCH to an extent. Also, OkCoin – one of the popular crypto exchanges, delisted both BCH and BSV, which took a hit on their respective prices.
Currently, BCH is trading at ~$540, which is about 44% lesser than what it was just a month ago. This resulted in a decrease in its market capitalization ($9.7 billion), pushing it out of the top 10 cryptocurrency list. Right now, BCH is standing at 11th position, just below Chainlink.
With Bitcoin price predictions being the hottest topic in the Crypto space, many experts are forecasting some interesting predictions for BCH in the coming years. Will the price of BCH go up? Let’s see!
BCH Technical Analysis
The support and resistance levels of BCH on the 4-hour timeframe are at $602 and $511, respectively. Sellers were strong, and buyers started to show some strength and didn’t let the price make a lower low. Currently, the market is moving in a range, and this consolidation seems to be healthy for BCH.
The price took support from the 4-hour timeframe multiple times, and that level seems to be significantly strong. From this point, buyers may take over, and the price could reach $602 (4-hour resistance level). If the buyer momentum is strong, the price could shoot up to the north with $755 (daily resistance) as the target. The current support on the daily time frame for BCH is at $458.
But there is a chance of seller domination in the BCH/USD currency pair at the 4-hour resistance zone. As shown in the price chart below, there is a strong possibility of sellers coming in at this level, and the price might take support from the daily or 4-hour support zones. The price from there could eventually shoot up to the north with $755 as the target.
All in all, bullish momentum is gradually building up in this cryptocurrency. Buying Bitcoin Cash from the above support zones is a great idea. It is advisable to look out for confirmation candlesticks before going long to make the signals more accurate.
Industrial Interest on Bitcoin Cash
BTC’s increased industrial adoption has favoured Bitcoin Cash in many ways. Global companies like Visa, Mastercard, PayPal, and Microsoft recently showed their interest in cryptos, which positively impacted the BCH market-cap.
In other news, Rakuten – popularly known as ‘Amazon of Japan’ has added BCH as a mode of payment. This retailer’s payment application is accepted by over 50k retailers, including popular fast food and convenience stores.
Cryptos are changing the way we used to transact and make payments. But only a few cryptos like BCH have the capability and infrastructure to make them ideal for daily transactions. Bitcoin Cash is one of the very few cryptos to match the transaction capabilities of fiat payment processing services like Visa. For this reason, investors should look at BCH as potential crypto to hold (Buy BCH).
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