Story by: The Freedonia Cooperative
Even with this week’s crypto price boom, no coin shot up as much as Bitcoin Cash.
BCH moved on a growing base of supporters who see its technology as superior to Bitcoin which it forked from in 2017.
Technical analysis shows that despite a 100% rise this week, BCH-USD may still have more room to go—with resistance points to watch.
As predicted in our last analysis for on Bitcoin Cash (BCH-USD) in February, the coin took the massive leap price leap it was poised to. This saw Bitcoin Cash shoot up over 100% on USD trading, and over 50% on Bitcoin (BTC-USD) pairs. Bitcoin Cash now finds itself testing the resistance that formed after prices dropped in the midst of the turmoil of the split of last year. What does the 2nd quarter hold for Bitcoin Cash?
Bitcoin Cash has seen its price double in just 48 hours, on the back of the strong bullish moves seen in prices of Bitcoin, which is actually the parent coin of BCH. BCH and BTC tend to have a strong correlation. Moreover, BCH is starting to see large scale adoption, with AMBCrypto reporting that more physical shops in Japan are accepting Bitcoin Cash over Bitcoin.
Adoption is key for a cryptocurrency and Bitcoin Cash has continued to push its quicker, more cost effective structure over Bitcoin. Strong communities are forming around Bitcoin Cash as believers think it’s the coin with the best chance at mass market appeal and use.
The long-term outlook seen on the BCH/USD weekly chart shows an asset on the path to price recovery, with decent buying volume which is gradually increasing. The previous support at $395.73 which was broken by the massive selloff following the BCH split of 2018 is now in view. The 9EMA is now firmly supporting the price candles and this is adding to the bullish bias seen on BCH. The surge in Bitcoin prices beyond the $4200 resistance has helped to pull along BCH, which is itself a fork of BTC. As long as buying pressure continues to dominate BTC prices, we expect same to continue with BCH.