Is it safe to buy Bitcoin Cash after the recent crash?

Is it safe to buy Bitcoin Cash after the recent crash?
фото показано с : invezz.com

2021-12-3 06:13

The Bitcoin Cash (BCH/USD) price has been under intense pressure in the past few months. The coin is trading at $556, which is about 25% below its highest level in November. Consequently, its total market cap has slipped to more than $10 billion and its ranking dropped to 22.

BCH and BTC correlation

Bitcoin Cash is a cryptocurrency that emerged from a Bitcoin hard fork in 2017. Because of this close relationship, the BTC and BCH coins have always had a strong correlation. Recently, however, this has changed. While Bitcoin is a few below its all-time high, BCH is about 86% from its highest level in 2017. 

The BTC and BCH correlation was attributed to the fact that the latter has always been cheaper than Bitcoin. For example, today BCH is trading at about $556 while the BTC is trading at more than $57,000. 

Therefore, since many cryptocurrency investors are individuals, they viewed BCH to be a better investment than Bitcoin. The same correlation happened between Bitcoin and Litecoin. 

It is still unclear why the correlation between the two has faded. It is likely because of the rising demand for Bitcoin from institutional investors. For example, this week, MicroStrategy announced that it bought more Bitcoins worth more than $420 million. As such, the imbalance has likely led to more demand for BTC.

Another reason why the Bitcoin Cash price has lagged is likely because of the lack of news. Unlike most cryptocurrencies like Avalanche and Algorand, BCH is never making headlines. This is a similar situation that is happening in Monero and Litecoin. Without news, investors do not have the catalyst to invest.

Bitcoin Cash price prediction

The daily chart shows that the BCH price has been under intense pressure in the past few months. The coin is slightly below the 25-day and 50-day moving averages. It is trading between the support and resistance levels at $470 and $730 while the MACD has moved slightly below the neutral level.

Therefore, the Bitcoin Cash price will likely break out lower as bears target the key support at $470, which was the lowest level since September 29th.

The post Is it safe to buy Bitcoin Cash after the recent crash? appeared first on Invezz.

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Cashcoin (CASH) на Currencies.ru

$ 0.0004289 (+0.63%)
Объем 24H $2
Изменеия 24h: -19.83 %, 7d: -30.46 %
Cегодня L: $0.0004262 - H: $0.0005443
Капитализация $22.93k Rank 99999
Доступно / Всего 53.458m CASH

cash bitcoin consequently total november highest market

cash bitcoin → Результатов: 126


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