Deutsch한국어日本語中文EspañolFrançaisՀայերենNederlandsРусскийItalianoPortuguêsTürkçePortfolio TrackerSwapCryptocurrenciesPricingIntegrationsNewsEarnBlogNFTWidgetsDeFi Portfolio TrackerOpen API24h ReportPress KitAPI Docs

Bitcoin Cash Price Prediction: US Rate Cuts Could Send BCH to Over $700

bullish:

0

bearish:

0

Share

Highlights:

  • Bitcoin Cash is consolidating between the $563.41 resistance and $518.58 support
  • Buildup in intraday bullish momentum could send BCH through $563.41 resistance
  • Such a rally could send Bitcoin Cash to $700, or higher, in the short term

Bitcoin Cash (BCH) is showing some upside momentum today, even as sentiment remains mixed in the altcoins market. At the time of writing, Bitcoin Cash was trading at $531.32, up by 2.35% in the day.

However, Bitcoin Cash trading volumes have dropped intraday. At the time of writing, Bitcoin Cash trading volumes stood at $332.4 billion, down by 18.57%. This is an indicator that the average investor is not yet confident enough to take a position in Bitcoin Cash. 

However, it is also a bullish signal as it shows that holders have conviction. They are not trying to use every minor rally to sell off their BCH. This conviction could skew Bitcoin Cash in favour of bulls, as reserves are likely to remain low even as the price starts to gain upside momentum. In addition to volume dynamics, several other factors support a BCH rally to over $700 in the short to medium term. 

Analysts Increasingly Agree That BCH Could Be Headed for a Breakout

One of them is the analyst consensus that Bitcoin Cash could be on the verge of a breakout. Multiple analysts agree that Bitcoin Cash is likely to head towards the $559 to $565 resistance. The expectation is that a close above this resistance level could trigger a rally to prices as high as $700 in the short term.

Given that analysts typically drive market sentiment, this could lead to more traders starting to bet big on Bitcoin Cash. The result is that BCH could end up pushing through the perceived resistance at $559 – $565 with high volumes. This, in itself, could trigger FOMO buying, paving the way for a parabolic price move. The price action exhibited by Bitcoin Cash is already consistent with what analysts are expecting. It is a signal for what is likely to come.

Bitcoin Cash Strong Fundamentals Put It In a Good Position for Growth

Besides analyst projections for Bitcoin Cash, real fundamentals are also a critical factor that could push the price higher. While most altcoins rely more on hype for their price action, Bitcoin Cash’s price is backed by real adoption. BCH is one of the most adopted cryptocurrencies for payments.

BCH’s larger block size mainly drives this adoption compared to BTC. This larger block size means it can handle more transactions faster and at lower fees. The result is that Bitcoin is now viewed more as a store of value, while Bitcoin Cash is increasingly becoming a currency for everyday use. This growing adoption at a time when cryptocurrencies are going mainstream could send Bitcoin Cash to new highs in the foreseeable future.

Expected Interest Rate Cuts in the US Could Trigger a BCH Rally to Over $700

The macro environment also favours Bitcoin Cash in the foreseeable future. There is a growing consensus on Wall Street that the Federal Reserve will likely cut interest rates in December. The cut is also expected to be relatively high, as high as 0.50%. This could trigger a strong flow of capital into risk-on assets across the board.

Already, sentiment is turning positive on the expectations. It means a confirmation could send liquidity flow into cryptocurrencies. For those with strong fundamentals such as Bitcoin Cash, this could send the price to prices as high as $1000 in the foreseeable future. 

Technical Analysis – Bitcoin Cash In a Multiday Consolidation

Bitcoin Cash is currently in a multi-day consolidation between the $563.41 resistance level and the $518.58 support level. If bulls take control and push BCH through the $563.41 resistance, then a rally to $700 could follow.

Bitcoin Cash
Source: TradingView

On the other hand, if there is a correction through the $518.58 support, then a correction to $455.76 could follow. Of these two scenarios, the BCH rally to over $700 is more likely. This is due to growing adoption and the possibility of a US rate cut in December.

eToro Platform

Best Crypto Exchange

  • Over 90 top cryptos to trade
  • Regulated by top-tier entities
  • User-friendly trading app
  • 30+ million users
9.9

5 Stars

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.

bullish:

0

bearish:

0

Share
Manage all your crypto, NFT and DeFi from one place

Securely connect the portfolio you’re using to start.