Bitcoin cash (BCH) is now trading at $1,000 USD, returning the price to levels not seen since late March of this year. Analysts have attributed the BCH spike to after-tax-season liquidity, strong volume, and a passionate and active community supporting the project.
Also read: Bitcoin Cash Gains Advance 4% Above BTC
Bitcoin Cash Smashes Through $1,000
The price of Bitcoin Cash has rallied to test levels above $1,000 for the first time since March. The move comprises a gain of more than 75% when measuring from early April’s low of approximately $610. With BCH hovering at approximately $1,050, the markets are approaching the 23.6% fibonacci retracement area when measuring from the all-time.
When looking at the BCH/BTC markets, one can see that Bitcoin Cash has began to make significant gains over bitcoin. The BCH/BTC markets recently broke above, and then bounced off a broken a major descending trendline, signalling that BCH’s gains over BTC may continue in the short term. The BCH/BTC markets are also testing the 23.6% fibonacci retracement area when measuring from the major resistance area of 0.25 BTC.
BCH Garners Mainstream Attention
Days ago, CNBC’s Brian Kelly, of the popular financial news program Fast Money, made his case for an all out buy of exactly one cryptocurrency, Bitcoin Cash. Describing his recommendation as “a bit controversial,” Mr. Kelly stood before a monitor to better flesh out his reasoning.
He acknowledged how bitcoin core and Bitcoin Cash often trade together, following one another up and down. He described BCH as being in the Monty Python Zone. Famously, its skits often portrayed characters who simply refused to give up even when it was obvious to everyone else they should. “Bitcoin Cash has been left for dead,” Mr. Kelly insisted. “It’s gotten absolutely crushed, so maybe it’s mostly dead but it’s not dead yet!”
Whilst many traders recoiled in fear as the cryptocurrency crash of 2018 drove down prices, smart money was waiting waiting on the sidelines for cheap prices on high performing markets. After watching BCH plummet by roughly 75% during the early months of 2018, many large buyers evidently began to accumulate. “We’ve got a potential breakout coming. We’ve got increasing volume,” Mr. Kelly hurriedly explained.
“Look at where we are on the charts,” he insisted, pointing to a mountainous graph. He urged that the price of $790 USD for the decentralized currency, at the time, was moving from a support indicator to an all out resistance level. In the shorter term he showed how BCH volumes were spiking, indicating “something might be changing here.” Asked about the broader controversies about which was the real bitcoin, core or cash, Mr. Kelly said he prefers the bottom line: buy low, sell high. He also said in his trading he hadn’t seen problems with liquidity, and that he’d be “buying the dip” on recent FUD news such as the New York Attorney General querying crypto exchanges.
Bullish Momentum Shift
Bitcoin Cash started to rumble Wednesday, the 17th, when it gained more than 10% in 24 hours – placing it among the top performing markets. In the days following, BCH continued to gain momentum, with Coinmarketcap estimating that BCH has gained in value by over 37% in just 7 days.
Analysts said a combination of factors influenced its overall breakout. One was the US taxpayer season coming to an end even after its Internal Revenue Service allowed an extra day due to computer problems. Many in the ecosystem believed the incredible gains of last year triggered a capital gains tax like never before, and a great many US enthusiasts were selling off their holdings to pay.
And while gurus such as Tom Lee of Fundstrat predicted after the tax season bitcoin core (BTC) prices would increase, it appears BCH is taking that to heart.
For BCH proponents, its eventual rise in price isn’t that much of a shock. They maintain Bitcoin Cash’s miniscule transaction fees, super quick confirmations, and steady network make it an obvious choice for both average investors and for businesses. In fact, as bitcoin core has seen a drop in businesses accepting it, this could be the right opportunity for BCH to fill that vacuum.
Are you bullish on Bitcoin Cash? Let us know in the comments below.
Images via Shutterstock, Trading View.
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