Bitcoin Cash gains momentum as BTC stalls: where is BCH headed?

Bitcoin Cash (BCH) has been experiencing a notable price surge recently, largely due to a shift in investor sentiment as Bitcoin (BTC) enters a consolidation phase. The BCH price surge has drawn attention, particularly with its inverse correlation to Bitcoin’s current price movement. As Bitcoin stalls, Bitcoin Cash seems to have found its momentum, causing analysts to explore its price predictions in light of this emerging trend. The inverse correlation between Bitcoin Cash (BCH) and Bitcoin (BTC) Bitcoin Cash (BCH) has historically been closely tied to Bitcoin (BTC), given its origins as a fork of the original cryptocurrency. However, in recent times, BCH has been showing an inverse correlation with BTC, moving in the opposite direction. As Bitcoin enters a consolidation phase, oscillating between $93,589 and $95,490, Bitcoin Cash has been rising, indicating that the two assets are no longer aligned in their price action. This inverse correlation is significant because it suggests that BCH can act as a hedge or alternative for investors when Bitcoin’s momentum slows. Bitcoin, often seen as the leader of the cryptocurrency market, has recently cooled off, as it struggles to break above key resistance levels. In contrast, Bitcoin Cash has managed to capitalise on this slowdown, with a 5.9% gain in the past 24 hours alone, pushing its price up to $372.84 at press time. The surge in BCH’s price can be attributed to increasing demand for Bitcoin Cash as a separate store of value when Bitcoin’s market becomes uncertain. Notably, as Bitcoin’s price remains range-bound, Bitcoin Cash benefits from renewed interest and an increase in its trading volume, which has risen by more than 70% in recent days, proving this. The 24-hour trading volume for BCH now stands at an impressive $548.58 million, signalling that more investors are diversifying their portfolios into BCH amid Bitcoin’s consolidation. Furthermore, the relationship between the two coins is not just limited to their price movement but extends into their derivatives data. For instance, Bitcoin Cash’s futures open interest is up 11.53% to $310.94 million, while Bitcoin’s futures open interest is down 3.06% to $62.19 million, underscoring the inverse correlation between the two cryptocurrencies. Bitcoin Cash price forecast: how high can the BCH price go? The recent rally in Bitcoin Cash has many analysts revising their price forecasts. Notably, BCH has successfully broken through a descending trendline, retesting and securing a solid uptrend. This move has helped BCH climb by 15.41% in eight days. As BCH hovers around $372, it is poised for a possible continuation of its rally, especially if it can close above the $397.50 mark on the daily chart. If BCH manages to break this key resistance level, a 15.23% extension of its rally could be on the horizon, with the next target set at $450. Bitcoin Cash price chart | Source: TradingView This price forecast is supported by positive technical indicators such as the Relative Strength Index (RSI), which currently reads 61, signalling bullish momentum and ample room before it enters the overbought region. The Moving Average Convergence Divergence (MACD) also presents a bullish crossover, offering further buy signals for BCH. In addition to the technical indicators, Bitcoin Cash’s strong price action is also supported by increasing network activity. The Daily Active Addresses metric has reached a new all-time high of 4.13 million, indicating that demand for BCH’s blockchain is rising. Active addresses on Bitcoin Cash Network | Source Sentiment This spike in network usage is contributing to the bullish outlook for BCH, as higher adoption tends to correlate with price appreciation. With the potential to reach new price highs, BCH’s outlook remains promising, particularly if the broader cryptocurrency market continues to recover from the fall after US President Donald Trump’s tariffs announcement at the beginning of April. The post Bitcoin Cash gains momentum as BTC stalls: where is BCH headed? appeared first on Invezz

Source: Invezz