Bitcoin Cash (BCH) has been a topic of debate since its inception in 2017—viewed as both a revolutionary asset and a product of profit-driven miners. Compared to its all-time high of $1,650, BCH has significantly depreciated over the past two years, even dipping below the $100 threshold earlier this year. However, it rebounded by over 100% shortly after, sparking renewed interest among investors and traders. This article explores BCH’s short-to-medium-term trends from multiple perspectives: news, fundamentals, and technicals.
What’s Driving the BCH Rally?
Like most major cryptocurrencies, BCH faced pressure in early June 2023 due to the U.S. SEC’s lawsuits against Binance and Coinbase, briefly falling below $100. However, the tide turned with two key developments:
- EDX Exchange Listing: BCH was among only four tokens (alongside BTC, ETH, and LTC) listed on the EDX platform.
- Bitcoin ETF Applications: Traditional financial firms filing for Bitcoin ETFs revitalized market confidence.
These events triggered a doubling of BCH’s price within days, accompanied by a $1.2 billion surge in trading volume—a classic case of rising price and volume.
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Additionally, BCH’s current classification as a non-security by regulators offers a competitive edge. Many higher-ranked cryptocurrencies on CoinMarketCap have been targeted by the SEC, potentially diverting liquidity toward BCH.
Bitcoin Cash: Fundamental Value Proposition
BCH (Bitcoin Cash) emerged from a Bitcoin hard fork, prioritizing scalability via larger blocks (default 8MB) and lower transaction fees. Key differentiators from BTC include:
- Higher throughput: Avoids BTC’s congestion issues.
- Recent upgrades: The May 2023 hard fork introduced CashTokens (token issuance) and smart contract support, enabling DApp development.
With a fixed supply cap of 21 million coins and a halving schedule mirroring Bitcoin’s (next halving: 2024), BCH positions itself as a medium of exchange for daily transactions—though real-world adoption remains limited due to:
- Low crypto literacy
- Merchant trust gaps
- Preference for fiat currencies
Technical Outlook: Short-to-Medium Term Consolidation
After hitting record highs during the 2021 bull run, BCH entered a prolonged downtrend until recent months showed signs of bottoming. Key technical levels:
- Resistance: $400 (historical pivot zone)
- Support: $90–$155 (1-year consolidation range)
Given the 2024 halving timeline and lack of major catalysts, H2 2023 will likely see range-bound trading between $100–$400, with tighter fluctuations around $150–$290. The current rally remains news-driven, implying heightened volatility and speculative opportunities.
FAQs
Q: Is BCH a good investment for 2023?
A: It’s better suited for traders than long-term investors, given its reliance on news momentum rather than fundamental adoption.
Q: How does BCH’s halving affect its price?
A: Historically, reduced supply from halvings creates upward pressure, but market conditions and adoption play equally critical roles.
Q: Can BCH overtake BTC in scalability?
A: While BCH’s larger blocks solve BTC’s congestion, network effects and developer activity still favor Bitcoin.
Conclusion
BCH’s recent rebound marks a potential bottom, but its price ceiling remains constrained by technical and fundamental factors. Until tangible adoption progresses, it’s primarily a speculative asset—ideal for tactical trades rather than value investing.
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Disclaimer: This content represents the author’s opinion and should not be considered financial advice. CFD trading carries significant risk—ensure you understand these risks before investing.