No one is left behind in this bull run. Bitcoin Cash after having jumped more than 80% in 20 days, decided to rest a bit, but based on the behavior we observed when conducting an analysis of its price, it may be about to wake up again.
At the time of writing, BCH is trading at $ 718.56 according to ProBit data, accumulating a 1.86% gain in the last 24 hours.
Let’s review the current behavior of this cryptocurrency below, looking for signs that tell us what may happen in the near future
Bitcoin Cash Trend Analysis Tells Us Higher Profits Should Come
When we look at the daily chart of BCH vs USDT, we notice a clear uptrend in the short term, and even in the medium term.
With ever higher lows and highs, the bulls are in control of the price of Bitcoin Cash. And even though it has been stagnant for the past few days, the dominant buying force could soon put pressure to generate new momentum.
Today, while this publication is being written, we notice a significant bullish intention, reflected in a candle with a certain volume of purchase, starting from a repeatedly respected support zone.
The immediate support is at $ 703.66, one that if broken would open the way to higher sales, for a deeper correction.
Either way a drop at this point will be more than a product of healthy profit takings, and a search for demand to drive the price back.
Other relevant supports that we should take into account, in case we see an immediate break at $ 703.66 are: $ 600.35, $ 526.91 and $ 495.33.
Analysis of the daily chart of Bitcoin Cash. Source: ProBit.
Network data is not encouraging enough
Although we are seeing undoubted uptrends in the price of Bitcoin Cash, when we perform an analysis of the data on chain, the results are not so positive.
One of the most worrying data about the BCH network is its low hash rate, as it has been reaching lows of several years, even when the price is trying to recover.
Currently, this rate is at 1.7059 EH / s, a level that had not been reached since 2018. This speaks of a low participation of miners in the network, and consequently less security of the same.
Bitcoin cash hash rate. Source: Coinwarz
It is also relevant to review other data such as the number of active addresses on the network. Today we note that while the price increases with considerable force, the number of new users is not too encouraging.
Despite the fact that we have been seeing a fairly significant increase in the volume of transactions, it can be deduced that it is more a product of the emotion caused by the price increases, than of a healthy growth in the adoption of cryptocurrency.
Either way, BCH has managed to keep alive as one of Bitcoin’s most important fork, and we won’t see it suddenly disappear, at least not in the short term. Meanwhile, Bitcoin Cash will continue to capitalize on the bull run of the crypto ecosystem.
Transactions and new addresses in BCH. Source: Coinmetrics.
All our publications are informative in nature, so in no case should they be followed as investment advice.
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