Bitcoin Cash is showing signs of rising momentum on a day when most top cryptocurrencies are either bearish or range-bound. In the last 24 hours, Bitcoin Cash has gained by 1%. As of 08:19 UTC, Bitcoin Cash was trading at $605. 86.
The increased focus on Bitcoin Cash has much to do with the upcoming halving. At the time of going to press, the Bitcoin Cash halving was only 7 hours away. This is a big deal because, like the upcoming Bitcoin halving, it is expected to alter the demand and supply dynamics of Bitcoin Cash in a way that favors a possible price rally.
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Bullish momentum has been quite strong for Bitcoin Cash in the lead-up to this halving. This is evident in the fact that Bitcoin Cash has still been up by 23% in the last 7 days despite this week’s marketwide price correction, which has seen Bitcoin Cash shed off some of its gains.
The BCH Halving Is Coming Up In Hours
The internal dynamics of the Bitcoin Cash block halving look like those of Bitcoin. That’s mainly because Bitcoin Cash is a fork of Bitcoin. Like the Bitcoin block halving, the Bitcoin Cash halving occurs every four years. At the moment, anyone mining Bitcoin Cash is rewarded with 6.25 BCH. However, after the block halving that is coming up in seven hours, miners will be rewarded with 3.125 BCH. Essentially, only half the supply coming into circulation from miners will be coming into the market after today.
The halving is a big deal because Bitcoin Cash has a similar supply to Bitcoin. Like Bitcoin, Bitcoin Cash has a capped supply of 21 million coins. This low total supply and the block halving means the long-term trajectory of Bitcoin Cash against fiat currencies will always be up. That’s because while demand chases an increasingly scarce supply of BCH, fiat currencies inflate over time, leading to value dilution.
A Marketwide Rally Coming Soon
While investors anticipate that the halving event will help drive up the value of Bitcoin Cash, expectations are high that BCH will get an additional boost from a marketwide price rally that could be triggered by the upcoming Bitcoin block halving that is 17 days away. Bitcoin has a significant sway on how the broader market trades, as evidenced by its price action this week. Bitcoin has been in a correction for the last 48 hours and has even triggered a slight correction in the price of BCH despite the big news around it.
As such, once it turns bullish again, and due to halving and strong demand from retail and institutional money, cryptocurrencies with bullish triggers will likely see new highs. This may explain why predictions of Bitcoin Cash hitting prices as high as $5000 in this bull cycle are realistic.
Bitcoin Cash is the cryptocurrency to watch today mainly because its block halving is happening today. The drop in mining rewards from 6.25 to 3.125 is expected to see the price of Bitcoin Cash rally today and easily make new all-time highs in the coming weeks, especially if the Bitcoin halving triggers a marketwide rally.
Bitcoin Cash Consolidating Amidst Rising Buying Volumes, Points To Possible Breakout
Bitcoin Cash is currently consolidating between $590 support and $704.5 resistance. However, with bullish volumes on the rise, the odds are that a bullish breakout is imminent. With the halving hours away, BCH could easily rally to $800 or more today.
On the other hand, if volumes remain low within the day, then Bitcoin Cash could continue trading between $704.5 and $590 for the rest of the day.
However, if bearish volumes increase and BCH pushes through the $590 support, then prices below $550 could come into play within the day.
Bitcoin Cash Price Prediction – Why $800 Is Within Reach Today
While the above scenarios could play out today, the odds are higher for a solid bullish breakout. That’s because the halving is happening today, and historically, this event has been followed by a significant price pump.
🚨 $BCH EMERGENCY UPDATE 🚨
Bitcoin Cash halving in 1 day 😳$BCH price at halvings dates:
2012: $12 pump to $1100
2016: $660 pump to $4300
2020: $240 pump to $1600
2024: $650 pump to ????Hash rate is starting to soar 🚀 pic.twitter.com/EB5C9D9lHk
— Ken Mack Show™ (@kenmackshow) April 2, 2024
Going by the buildup of momentum around BCH in the past week, the odds are that once the halving event happens, a rally could see BCH quickly rally to $800 and conservatively rise to $1000 or more if there is strong enough buying pressure immediately before, during and after the halving.
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