Bitcoin Cash Fundamental Analysis
Bitcoin Cash (BCH) is a cryptocurrency born out of the Bitcoin protocol’s 2017 hard fork. Bitcoin Cash is one of the few Bitcoin forks that eventually made their way into the public eye: for example, BCH itself spawned Bitcoin SV — another modification of the original protocol.
To answer the question “What is Bitcoin Cash”, one should take a look at a long and heated debate within the community about possible solutions to the scalability problem, which happened in 2017. One of those solutions was a protocol change called Segregated Witness (SegWit) and the development of the Lightning network, eventually implemented in the Bitcoin network.
Another group wanted to increase the block size limit to improve transaction times, which, as they felt, was essential for Bitcoin in order to become a feasible payment system instead of being used mostly as a store of value. This was achieved by splitting off what would become Bitcoin Cash, as BCH block size increased first to 8 MB (versus Bitcoin’s 1 MB), and in 2018 again — to 32 MB, which facilitates higher network throughput. This also led to the Bitcoin Cash transaction fees being significantly lower than Bitcoin’s.
Barring the block size, there is virtually no difference between Bitcoin and Bitcoin Cash: both are used as a store of value and as a means of p2p payments. Most of the other features are the same, too — for example, Bitcoin Cash also uses Proof-of-Work to secure the network.
Bitcoin Cash Price Chart
Like most of the crypto market, Bitcoin Cash reaped the benefits of the bull run of early 2021. In late December 2020, Bitcoin Cash’s price was hovering just above $350, but by February 2021 it had already reached ~$720 which proved to be a resistance line — so Bitcoin Cash’s price bounced down to the $450–$550 range. BCH was trading within those bounds until April 2021, when BCH’s price started surging again, getting close to $1100 by the middle of that month and, after a short dip, peaking at $1,635.15 in May (not the all-time high, but still good).
After the May crash, Bitcoin Cash’s price plunged to ~$550 in a few days; the price kept declining in the following months, stabilizing around $390 in late July. BCH joined the crypto price rally in August 2021, reaching ~$600 by the mid-month, which made Bitcoin Cash’s future predictions optimistic again.
Bitcoin Cash Technical Analysis
After the long descending wedge, in the mid-summer of 2021 Bitcoin Cash hit the support zone between $380 and $400 and bounced back, finally breaking out of the downtrend. This point can be also considered a “head” in the inverse head-and-shoulders pattern, with the second “shoulder” being a small lull in price action in the first days of August. Since then and until at least mid-August, Bitcoin Cash’s price has been continuing its climb uninterrupted, easily breaking out of the resistance zone at $545–$565 and reaching upwards of $600.
Bitcoin Cash Price Prediction
Below we have collected the most reliable price projections for Bitcoin Cash (BCH) from popular forecast platforms.
#1. WalletInvestor BCH Price Prediction for 2021, 2023, 2025
According to WalletInvestor, Bitcoin Cash price will grow from $683.13 to $921.013 in one year. That makes BCH an awesome investment. The long-term earning potential is 34.82%. Predicted price for the end of 2026 is $1813.680.
#2. TradingBeasts BCH Price Prediction for 2022
Answering the question about if Bitcoin Cash is a good investment, TradingBeasts say a resounding no. In the 2021 perspective, this coin price is predicted to reach $N/A with a growth to $N/A by the end of 2022.
#3. DigitalCoin BCH Price Forecast for 2021, 2022, 2023, 2025
In DigitalCoin analysis, the price of Bitcoin Cash cryptocurrency will rise in the next 5 years starting from $673.81 as of today’s price to $2587.4025514. It will go up to $1104.044888 by 2022 and continue its growth in 2023–2024. Based on this forecast, Bitcoin Cash is a profitable long-term investment.
#4. LongForecast BCH Price prediction for 2021–2022
In 2021, the average Bitcoin Cash price will go up to $925.1. In 2022, Bitcoin Cash’s price will rise significantly to an average of $1483.625.
As it can be clear from the analysis cited above, Bitcoin Cash (BCH) projections are rather contradictory. There is no universal consensus either about positive or negative future BCH price movements. Indeed, the future possible growth depends on various factors: announcements, new technological solutions of the Bitcoin Cash projects, the crypto environment in general, legal position, and so on. We kindly remind you that before investing in any cryptocurrency, it is essential to do your own research (DYOR).
Is it better to buy Bitcoin or Bitcoin Cash?
The answer to this question depends on your goals, but if you can, you should buy Bitcoin Cash and Bitcoin both. Bitcoin is probably a more trusted currency of the two, although it’s more geared towards being a long-term store of value than the means of payment, due to its low throughput and high fees. Bitcoin Cash, while less established, is faster and cheaper, suitable for small transactions like buying a cup of coffee. Its fundamentals are still strong, so Bitcoin Cash projections are promising, too.
Is Bitcoin Cash (BCH) a good investment in 2021?
Bitcoin Cash (BCH) is a good investment in 2021, according to various experts whose Bitcoin Cash future value predictions promise rapid growth: for example, in 2022 it could go as high as $1000, with the potential to grow even higher in the long term. Some Bitcoin Cash price predictions for 2025 put it above $2000.
Will Bitcoin Cash overtake Bitcoin in the future?
No, Bitcoin Cash probably won’t overtake Bitcoin in the future, at least in the next few years. As BTC is the oldest and most well-known cryptocurrency on the market, its price is unreachable for any other crypto at the moment. Bitcoin Cash forecasts say it will reach $1500-$2000 in the next four to five years, while even the most pessimistic Bitcoin price predictions don’t put its future price nearly as low.
Is Bitcoin Cash going to replace Bitcoin?
No, Bitcoin Cash is not going to replace Bitcoin, as it’s a separate project led by an independent team. Looking at the Bitcoin Cash news, though, it’s clear that BCH is a strong crypto player in its own right.
Is it smart to invest in Bitcoin Cash now?
Yes, it is smart to invest in Bitcoin Cash now, at the time of writing (August 2021), considering current trends. The crypto market is on the up and up again, and BCH is no exception, growing more than 50% since the recent lows. Note that there’s never an ideal moment to enter or exit the market, though, so if you believe positive Bitcoin Cash future predictions, the best time to invest is always now.
Is it worth selling BCH for Bitcoin?
Whether it’s worth selling BCH for Bitcoin depends on what you’re hoping to achieve. The prices of the two are heavily correlated, so for someone trying to hedge risks, this is probably not the right move. Getting some gains through arbitrage might be possible if you’re a seasoned market player. But if you don’t believe Bitcoin Cash predictions or are just more sure about Bitcoin’s future, this is a justified decision.
Why is Bitcoin Cash not exceeding Bitcoin’s value?
Bitcoin Cash is not exceeding Bitcoin’s value because Bitcoin is still more widely adopted, with a long history behind it. Bitcoin Cash is seen as an “upstart” project by many in the original crypto community. Note that, despite that, Bitcoin Cash’s market cap is still quite high, signaling the public trust in its fundamentals.
Is Bitcoin Cash undervalued?
Bitcoin Cash might be undervalued and therefore have good potential, as of August 2021. For example, Coinfairvalue.com places BCH’s fair value at ~$700, which is higher than the current price. Note that in a market like crypto, known for its high volatility, any coin’s valuation may change very quickly — see Bitcoin Cash price predictions for 2021, for example.
Is Bitcoin Cash and Bitcoin Cash ABC the same?
No, Bitcoin Cash and Bitcoin Cash ABC are not the same coin — Bitcoin Cash ABC was forked off Bitcoin Cash. Moreover, this project has been rebranded in the summer of 2021, now called eCash, while Bitcoin Cash has retained this original name.
How good is Bitcoin Cash?
Bitcoin Cash is good for day-to-day use due to its low transaction fees and high confirmation speed. At the same time, it’s stable enough and has a lot of potential as a store of value. This makes Bitcoin Cash a good investment, too.
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