CRYPTO NEWS AGREGATOR
Wed, Jun 17, 2020 11:00 AM by Sumit Bera

Bitcoin Cash (BCH) Price Analysis

Bitcoin cash bch price analysis


Introduction

Bitcoin Cash is a Bitcoin hard fork that appeared in August 2017 as a result of a decision by a group of influential miners, developers, investors, and users who were against the SegWit2x agreement. Today, BCH is a decentralized peer-to-peer payment system the idea of which is to become a "cryptocurrency for everyday transactions."

To include more transactions in the block and increase scalability, Bitcoin Cash developers decided to increase the block size from 1 MB to 8 MB.

After its release, BCH quickly became a popular cryptocurrency: almost 1,500 blocks were created within a month. Mining pools, such as Antpool and ViaBTC, recognized the potential of BCH and allocated large hashing power to its mining.

According to CoinMarketCap, Bitcoin Cash holds a strong 5th place in the world crypto rating.

Achievements and highlights

The Bitcoin Cash code is based on the protocol of the first cryptocurrency. 

In May 2017, digital money was in high demand due to investment attractiveness, and many speculators appeared on exchanges. As a result, a problem spot was discovered in the Bitcoin network: a fixed block size of 1 MB could not fit enough transactions. A queue was formed, and users had to wait for the transfer of cryptocurrency up to 2 days. 

To solve the problem on July 20, 2017, the community voted for the third option called SegWitx2 (Segregated Witness). Some users felt that the decision was made in favor of large miners and investors, and did not develop the Bitcoin payment system.

Dissenters led by Amory Sechet announced the rejection of SegWitx2. They wanted to leave the original blockchain structure without taking information outside the system, but increase the block size to 8 MB, bypassing the scalability problem. A hard fork was to be held at block 478558. On August 1, 2017, two blocks No. 478559 were created in the Bitcoin chain. A new fork of the first cryptocurrency was named Bitcoin Cash.

All participants of the crypto community with BTC on block No. 478558 received a similar amount of BCH to their wallet account. At the same time, each coin cost about 500 USD on the exchange.

On April 8, 2020, the Bitcoin Cash blockchain hosted the first halving in its history. The reward for miners in the next four years will be only 6.25 BCH instead of 12.5 BCH.

Statistics

It all started on August 1, 2017, at about $200 for 1 BCH, and even with this value, the cryptocurrency immediately reached the top of the Coinmarketcap rating. The next day the price doubled. At first, the stock index was stable, but after three weeks it rose to $1,000. Users seem to have decided that it was an artificial increase because the price immediately fell to $700.

In mid-October 2017, the index reached $317 per 1 BCH. In November 2017, the situation changed, and BCH rose to $1,600. The highest level of the Bitcoin Cash index was reached in mid-December and amounted to $4355.

Hard days for the cryptocurrency market began on December 22, 2017: all projects, including Bitcoin, began to lose ground. The price of Bitcoin Cash fell to $1,000.

The winter of 2018 was the worst for the cryptocurrency market: prices were minimal, and Bitcoin Cash could be bought for $80. After a slight increase, the price rose to $534 but then fell again.

As of 14.06.2020 CoinMarketCap showed the following statistics on the price of BCH:
Statistics on the price of BCH

Current price of Bitcoin Cash: $239.53
Market Cap: $4 415 585 770
Volume (24h): $1 244 459 937
Circulation Supply: 18 434 631 BCH
Max Supply: 21 000 000 BCH

Through the last 52 weeks, the peak worth of the coin was $522.09, and the minimum was $139.22. All-Time High Price for BCH was stated on December 20, 2017 – $4 355.6.

Technical analysis

TradingView reflects technical analysis on Bitcoin Cash based on the most popular technical indicators: Moving Averages, Oscillators, and Pivots. During the last month, it is seen that out of eight Oscillators, 6 are Neutral, 0 is indicating Buy action, and 2 are stating Sell action. Most of the Moving Averages are stating Strong Sell action. All in all, the Summary states that with BCH/USD pair the dominant action is Sell.
bitcoin cash bch sell
Pivots for BCH/USD are indicated in the table below. 
A list with pivots
During the last week, the picture doesn’t change at all. Out of 11 Oscillators, 7 are Neutral, 1 is indicating Buy action, while 3 are stating Strong Sell action. Most of the Moving Averages are stating Strong Sell action. Thus, the Summary states that with BCH/USD pair the dominant action is Sell.

In the future, we shall be prepared for a bearish trend.

Price prediction

WalletInvestor Price Prediction

WalletInvestor analysts believe that a long-term fall in BCH is inevitable: the value of Bitcoin Cash may fall to $125. Moreover, they believe that BCH is a bad long-term (1-year) investment. Moreover, BCH will not be able to replace Bitcoin shortly. 

LongForecast Price Prediction

LongForecast provides a mostly negative forecast for BCH prices in the coming years: by the end of 2020 the price will drop to $166, and 2022 will be the worst for Bitcoin Cash as BCH will fall to a historic low of $36, and only after that will it rise to $200 in 2024.

DigitalCoinPrice Price Prediction

Unlike LongForecast, DigitalCoinPrice gives the most positive BCH price forecast. They believe that the index of this cryptocurrency will grow rapidly: in 2020, Bitcoin Cash will rise to $500, and in 2025 it will reach the highest level — $1084 for 1 BCH.

Trading Beasts Price Prediction

Trading Beasts predicts a minimum price of $145 and a maximum of $213 at the very end of 2020. By the end of 2022, the price will be at least $341 and a maximum of $501 for 1 BCH.

Plans

With the development of digital literacy of the population and the obvious failure of the bank transfer system, the popularity of Bitcoin Cash will only grow. But can Bitcoin Cash replace Bitcoin, becoming the number one cryptocurrency? If the Bitcoin Core team does not solve the scalability problem, then soon users will begin to switch to the best alternative – BCH.

Developers are constantly working to optimize digital currency protocols. So, on May 15, 2018, the network was updated, thanks to which the maximum block size increased to 32 MB.

The roadmap of Bitcoin Cash reflects a great plan for future development. This includes:

  • Faster Block Propagation (graphene or other);
  • Merklix-Metadata Tree (scalable block processing);
  • UTXO Commitment (blockchain pruning);
  • Adaptive Block Size (market-driven growth to 1Tb clocks);
  • Fee Improvements (cheaper transactions);
  • Pre-consensus (near-instant security for merchants);
  • New Transaction Format (more capable, more compact).

Experts say

Ryan Watkins, a researcher at analytics firm Messari, believes that as a result of the decrease in rewards, BCH miners began to massively switch their centers to more “profitable” assets. At current rates, daily production revenue will drop from $471,600 to $235,800.

At the beginning of this year, a long-standing supporter of this cryptocurrency, John McAfee, also sharply criticized Bitcoin. He stated that Bitcoin is "ancient."

Meanwhile, Bitcoin supporters are turning in favor of the oldest cryptocurrency, despite those weak points to which critics draw attention. So even the low speed of confirming transactions with Bitcoin Cash can represent a whole conceptual approach to avoiding the rush in business matters. Commissions in BCH are low, so this cryptocurrency can be more stable with more transactions.

 

The head of the largest Bitcoin Cash network, BTC.TOP mining pool, Jiang Zhuoer, proposed transferring 12.5% of the rewards for mining new blocks to a specially created blockchain development fund. 

Some community members have already opposed this proposal. A well-known trader, hiding under the nickname WhalePanda, says this offer is like “a centralized totalitarian regime with a 51% attack thread”.

Ethereum creator Vitalik Buterin agreed with the trader. He said that "the payment of tax in the article is called voluntary, but in reality, it is, of course, a compulsory soft fork." Buterin also noticed the irony in what was happening: in Bitcoin Cash, a fork of Bitcoin, which appeared because the community opposed forced updates, they proposed introducing a “voluntary-forced” tax.

Disclaimer

Be aware that cryptocurrency is a highly risked asset that may rise and drop according to external obstacles. Before investing in any cryptocurrency or selling any cryptocurrency you possess, we advise you to check every information possible. We tried to collect the most relevant information for your convenience, but it is only your choice and decision whether to buy Bitcoin Cash or not. Do not invest money in any sort of business you can’t afford to lose, and listen to your common sense.

Stay in touch!

Subscribe to our weekеly newsletter!
Related:
Zoom