Bitcoin Cash (BCH) Climbs 17% as the Road to $600 Beckons
Bitcoin Cash (BCH) once again led the way in the cryptocurrency market with 17% growth leading into Sunday morning.
While many other altcoins have already made back the gains lost during the market crash of last November/December, Bitcoin Cash is still nursing losses from the hash war coin split.
Now, as coins like Ethereum, EOS, Litecoin and Cardano race past those pre-November levels, there appears to be an opportunity for BCH to do likewise.
Bitcoin Cash Price – BCH/USD
From Saturday night’s low of $354.35, the value of BCH shot up to $414.70 overnight, marking 17% growth.
That’s still some way off Thursday morning’s peak of $438.52, which BCH reached before plunging back down to $350 amid Bitcoin’s flash crash on the same day.
The profitability of Bitcoin Cash wasn’t lost on the mining community this week. Major mining pools often switch between Bitcoin (BTC) and Bitcoin Cash (BCH) depending on which chain offers the highest returns (amid fluctuating hashrates).
Earlier this week BTC.top controlled almost 54% of the BCH hashrate, and sent the BCH community into panic mode. Luckily the miners proved to be benevolent, and in all likelihood were merely chasing profits.
However that didn’t stop speculation that the hashrate dominance could have been the work of ‘Faketoshi’ Craig S. Wright, and CoinGeek cohort, Calvin Ayre. Perhaps one could forgive the BCH gang for assuming the worst. After all, it has only been four days since the last attack was launched on Bitcoin Cash.
Bitcoin Cash is Being Used…
Amid all of this, the utility of BCH continues to be apparent when looking at blockchain statistics. While more transactions take place on Ethereum, Litecoin and XRP, the U.S dollar value of those transactions are dwarfed compared to Bitcoin Cash.
The orange line on the graph below shows BCH transaction value in USD. Several times this month the daily transacted value shot past $1.8 billion, while the same transactions on other major alts equated to a few hundred million.
Those spikes on the graph appear more readily whenever Bitcoin fees go above and beyond what people deem reasonable. Earlier this month BTC fees peaked at $2.49 per transaction. As the week went on, and Bitcoin’s surge continued, those fees reached as high as $4.87. Today those fees have fallen to $2.74, however that’s worlds away from XRP’s fees of $0.0005, or BCH’s fees of $0.005.
From personal experience, I’ve seen even hardcore Bitcoiners switch their funds to BCH before making a transaction, showing that money talks, and BTC’s philosophy can take a walk.
The Road to $600 BCH/USD a Real Possibility
When the hash war hit last November, the value of BCH declined as a portion of its worth was siphoned off to the Bitcoin SV (BSV) chain. This happens often during coin splits, and was even evident back in 2017 when originally BCH split from BTC.
This snapshot shows the three months prior to the Bitcoin Cash coin split. During this time the value of Bitcoin Cash frequently flirted with, or exceeded the $600 mark.
Several major altcoins have already cleared those pre-November levels, and indeed, now that BCH is in the $400 range again, it too is coming close.
As Bitcoin SV continues to plummet, it could be a sign that the gap between the two coins is widening, opening up the possibility of a BCH revival, and return to pre-hash war levels.
Hacked’s technical analysis also spotted the possibility of a return to $600, or even $650. Read Technical Analysis and Market Entry: Bitcoin Cash (BCH) – Big Pullback and Potential Buy Opportunity..
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.