Bitcoin Cash (BCH) Price Rising: 5 Reasons the Coin is Outperforming (March 2019)
Bitcoin Cash (BCH) prices broke above the $160 level, contrary to the sliding trend as Monday’s markets saw selling in all the major coins.
Bitcoin Cash (BCH) saw its price gains extended on Monday, despite the slight slump in other assets. BCH prices rose by more than 22% net in the past trading week, with most of the gains triggered on Friday.
BCH traded at $159.82 as of 11:20 UTC on Monday, with trading volumes exceeding the equivalent of $500 million in 24 hours. BCH reached a peak at $160.69 on March 16, and has managed to preserve the relatively high price.
Here are 5 possible reasons for the gains:
Bitcoin (BTC) above $4,000: BCH still depends on the leading coin for its price formation. The BCH/BTC pair takes up more than 26% of total activity. The rise of BTC over the weekend, breaking the $4,000 level, helped boost BCH prices as well.
Altcoin season: Separate altcoins are having their moment to rally, especially after a long, flat period with no movement. BCH remains a major coin with high liquidity, and boosting its price may be attractive to traders. BCH was also late to the game, hardly marking gains while other coins recovered from the lows. Now, it may simply be BCH’s turn to show its strength.
Trading inflows: The trading profile of BCH sees inflows from BTC, but also from Ethereum (ETH), and USDT, seeking better returns. This keeps the coin afloat, ensuring enough liquidity to sustain at least a short-term rally. The liquidity and diverse trading pairs may give BCH a boost.
Breakout expected: Technical analysis shows that traders are expecting a breakout from the recent lows, as BCH overcomes resistance. The self-fulfilling prophecy may be extending the weekend rally, putting the asset on track for additional gains. Unline BTC, the BCH price is, for now, holding back from crashing and forming a “Bart Simpson”, the often-ridiculed pattern of high prices over the weekend, which crash on Monday.
Better reputation: After the hard fork in November, Bitcoin SV (BSV) gave up on its hopes for taking over BCH, and sank to permanently lower prices around $67. As BSV also gained the reputation of a technically confusing coin, the BCH ABC version is regaining its footing as a leading coin with a good standing and a solid fan base. The presence of SMS payments is also boosting the influence of BCH.
The digital coin markets remain volatile, and BCH is still shaky, unable to regain the levels from before the hard fork. However, the coin may continue to see bullish factors and rise to a higher valuation if optimism persists.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.