Key Points
- Bitcoin Cash (BCH) climbed over 20% on Nov. 20, hinting at further gains according to bullish chart patterns.
- BCH’s rally has resulted in a fortnightly gain of over 41%, reaching a 7-month high of $529.
Bitcoin Cash (BCH) experienced a significant surge on November 20, leading the top 100 cryptocurrencies with a jump of over 20%. Analysts are predicting further increases, pointing to bullish chart patterns.
The recent rally has seen BCH’s gains over the past two weeks exceed 41%, with the altcoin reaching a seven-month high of $529. The price rally coincided with a doubling of the daily trading volume, which hovered around $1.48 billion.
Bitcoin Cash’s Performance
Despite the impressive rise, BCH is still 86% down from its all-time high of $3,785.8, achieved on December 20, 2017.
Created in 2017 as a hard fork of Bitcoin to address scalability issues, Bitcoin Cash has often mirrored the performance of its predecessor. One key difference between the two is the block size. BCH supports blocks of up to 32 MB, much larger than Bitcoin’s 1 MB limit, allowing for a greater number of transactions within the same time frame.
BCH’s rally coincided with Bitcoin’s rise of over 4.5% in the last 24 hours, reaching an all-time high of over $97,500 before settling back to $97,093.
Influence of Bitcoin and Market Sentiment
The crypto community’s excitement about Bitcoin potentially breaking the $100K mark has positively impacted Bitcoin Cash, resulting in a $178 million increase in its market cap over the past 24 hours.
Interest in Bitcoin has also surged following President Donald Trump’s announcement about major initiatives involving digital assets, including a proposal for a national Bitcoin reserve in the U.S. and a promise to position the United States as the “crypto capital of the planet.”
This increased interest in Bitcoin often spills over into BCH and other crypto assets closely related to Bitcoin, a phenomenon known as the “Bitcoin effect.” Bitcoin SV (BSV), another hard fork of Bitcoin, also rose by 12% over the past day.
Many in the market view BCH and BSV as cheaper alternatives to Bitcoin, offering exposure to a cryptocurrency tied to the original vision of a decentralized peer-to-peer electronic cash system.
Future Predictions
Data from CoinGlass reveals that open interest in BCH futures has risen 49% over the past day, standing at $377 million. This rise suggests growing investor activity and increased capital flow into Bitcoin Cash, potentially leading to further price gains.
Community sentiment around BCH is also bullish, with 97% of 40,516 traders on CoinMarketCap expecting short-term price gains.
Several analysts and traders predict strong price targets for the altcoin. Analyst CW noted that BCH bulls are currently attempting to overcome selling pressure at $530. He predicted that once the altcoin breaks past this level, it would likely rally swiftly to $640 and beyond, provided the trend remains strong.
Another analyst, using the moniker XForceGlobal, observed that BCH has been accumulating for over 357 weeks while forming higher lows. He shared a BCH chart showing the formation of a massive triangle pattern, with a breakout above it typically leading to major gains for altcoins in technical analysis.
Analyst Javon Marks has set a long-term target of $3745, suggesting BCH could soar to over 600% from current levels, citing key bullish patterns that have flashed on the monthly chart.