Bitcoin Cash is the top performing of the top 20 large-cap cryptocurrencies today. While most top cryptocurrencies are mainly directionless, Bitcoin Cash is in the green, and its market capitalization is up by 11.75% to hit $13.35 billion.
Bitcoin Cash is a fork of Bitcoin that was born out of the idea of keeping Bitcoin usable as an everyday currency rather than taking the route of digital gold. Bitcoin Cash is faster, and its transactions are cheaper than Bitcoin’s. This has been adopted over time by many businesses that now have it as a payment option.
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Today’s Bitcoin price rally is mainly due to the block halving that has reduced the mining rewards from 6.25 to 3.125. During the halving, Bitcoin Cash experienced a sharp price correction that dropped to a low of $565. A drop in the hash rate triggered the sudden dip in the price as more miners turned to Bitcoin for the higher block rewards and the fact that the two Bitcoins share a hashing algorithm.
Today Bitcoin Cash encountered extremely slow and intermittent blocks as it headed into the Halving event.
Due to the shared hashing algo between BTC and BCH, miners prior to the halving block 840000, had already switched over to mining BTC in anticipation of the halving and… pic.twitter.com/9v46R70Ngx
— DΛVID 🟢 (@DavidShares) April 3, 2024
This caused a slowdown in the blocks. However, the hashing difficulty has since adjusted, and the hash rate is expected to return to normal after Bitcoin’s halving, which will happen in around 15 days.
BCH Gaining Momentum Post-Halving
However, as was expected post-halving, the price of BCH has surged to $676 and is still gaining upside momentum. This is mainly because, with lower rewards to miners, the amount of Bitcoin Cash entering circulation is expected to be lower, tilting the demand and supply dynamics in favor of an increase in price over time. It is the same reason that Bitcoin usually does well after the halving and why it is such a highly watched event, just like the recently completed Bitcoin Cash halving.
A Major Upgrade Coming Up In May
Besides the recently completed BCH halving, investors are looking up to BCH because a significant upgrade is coming up in May. The upgrade touches on Bitcoin Cash’s block size. With the hype around the halving getting more robust and the upcoming update adding, the odds are that Bitcoin Cash could see even higher prices going forward.
Bitcoin Halving Could Add To The Momentum
Even better is that the Bitcoin halving is coming up in two weeks, which will benefit BCH in two ways. First, the Bitcoin halving tends to usher in a new crypto bullish super cycle with most altcoins going parabolic. With Bitcoin Cash already building up momentum way before the BTC block halving, the odds are that FOMO could see more money flow into BCH than most altcoins and push it to new highs. At the same time, after the halving, miners will have no significant incentive to move away from BCH to BTC, ensuring that BCH operates at an optimum as the hash rate rises.
BCH is also likely to benefit from Bitcoin Cash being available on almost all major cryptocurrency exchanges. This makes it a lot easier for retail money to buy into the FOMO, and with its rising price momentum, FOMO could see BCH test new highs sooner than most altcoins.
In the section below, we look at Bitcoin Cash’s price action to determine how it could trade for the remainder of the day and in the coming days.
Bitcoin Cash Price Prediction – Why $700 Is A Realistic Target Today
Bitcoin Cash is trading at 668.23, up by 9% when going to press. Volumes were rising too, up by 28% to hit $1.65 billion in the day.
Bitcoin Cash is in a sharp bullish reversal after Bears tried to lower the price on April 3. The bullish reversal has seen Bitcoin Cash erase all the losses from the last 48 hours, and buying volumes are rising. If Bitcoin Cash continues its current momentum, it could test $704.5, a critical resistance level in the day. If bulls push BCH through the $704.5 resistance, then prices $800 or more could be within reach in the day.
Why BCH Could Breach $700 Today
Besides Bitcoin Cash gaining upside momentum, buyers are also retaking control across the market. This will likely support BCH, whose fundamentals, mainly the halving, give it some underlying strength.
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