Introduction
As Bitcoin and Ethereum prices collapse, Bitcoin Cash seems more resilient and recovers easier from BTC dips. For months, we overlooked a long period of consolidation forming in the Bitcoin Cash / BTC trade, perhaps giving today an indicator of a massive breakout to the upside for Bitcoin Cash. Here’s why we believe BCH has all the makings of the next big cryptocurrency investment, along with 7 price predictions to watch closely in the coming weeks and months.
Cryptocurrency is just getting started, so it’s possible that we’re in for a bumpy ride. A lot of cryptocurrencies have been introduced to the market, yet most don’t maintain any price stability. The volatility of cryptocurrency creates an environment where traders are constantly on their toes, waiting for a chance to buy low or sell high. Over time, investors could grow frustrated with these frequent fluctuations and start looking elsewhere for stable investments. However, there is one cryptocurrency that has remained relatively stable throughout the past few months: Bitcoin Cash.
Bitcoin Cash is more resilient than Bitcoin and Ethereum
Bitcoin’s price has fallen around 45% from its all-time high of $20,000, while Ethereum has fallen over 75%. Meanwhile, Bitcoin Cash has only fallen about 30%. This is due to a long period of consolidation forming in the Bitcoin Cash / BTC trade. Resistance has been tested at $1,000-$1,100 for months now with no success (with increasing volume). The community appears bullish on adoption and a potential $100 valuation for one BCH. As ETH’s market cap falls below that of BTC, it may indicate a massive breakout to the upside for BCH. It seems this may be crypto’s future valuation point given disruptions like ETH hard-forking without community consensus or U.S.
Bitcoin Cash has been consolidating for months
However, today we may be seeing a breakout to the upside for Bitcoin Cash. The FTX exchange that offers the trade of BTC, ETH, and BCH started trading ETH at $98 per token. This price stability is a disruptive development to other cryptocurrencies, which are plagued with wild price swings like Bitcoin’s recent 30% dip in value. Merchants who have been accepting Bitcoin can now start accepting BTC or BCH instead if they so choose. In this way, the future valuation of these three coins might show more upside potential for BCH than BTC or ETH.
Today’s price action indicates a massive breakout to the upside
Price stability is a key component of any cryptocurrency. Bitcoin Cash has shown better price stability than its counterparts in recent months, especially when BTC dips.
Disruptive developments like SegWit may have impacted the future valuation of both BTC and BCH.
One of the key indicators for a massive breakout to the upside for BCH is an extended period of consolidation forming in the BCH/BTC trade, which we’ve seen for over 6 months now without a conclusion.
If we see a breakout from this current consolidation pattern in both time frames, we could be looking at even more gains for BCH/USD going forward.
Conclusion
It’s been a rough few weeks for cryptocurrency markets. Bitcoin has lost $1,300 in the last three days alone, while Ethereum has sunk over 40% in that same time period. The market dominance of bitcoin has fallen below 50% for the first time since November 2017 and altcoins have taken a major hit. In this current market climate, it seems that Bitcoin Cash is weathering the storm better than most.
Investors should be warned against investing heavily in any cryptocurrency at this point because of how quickly everything can change. The future valuation of cryptocurrencies will depend on many factors such as regulatory uncertainty, exchange security issues, and high demand from China among other things.
Originally published at read.cash.