Bitcoin Cash (BCH) saw its price increase 2.23% over the past 24 hours to $217.14, up from $212.35 yesterday. With a market capitalization of $4.23 billion, BCH remains one of the top cryptocurrencies by market cap.
In this in-depth analysis, we'll look at the key metrics behind Bitcoin Cash's price movement and what traders can glean from the data.
Recent Price Action Shows Momentum Building
Over the past week, BCH has seen impressive growth of 15.23%. This upside momentum has carried over from the previous month as well, with BCH gaining 17.50% over the last 30 days.
Zooming out further, the 6-month return is even more staggering at 65.17%. This shows that despite some short-term volatility, the long-term trend for BCH is decisively bullish.
Diving into the most recent 24-hour period, trading volume came in at a substantial $169.60 million. This level of trading activity shows that there is significant interest in BCH right now. The 1-hour change was 1.79%, continuing the upwards trajectory.
Technical Indicators Suggest Potential for Further Gains
Looking at key technical indicators on the daily time frame, the moving averages have made a bullish crossover within the past week. The 50-day simple moving average moved above the 200-day SMA, which is a reliable buy signal for many traders.
The relative strength index (RSI) is currently at 65, meaning BCH is not overbought just yet. There is room for the rally to continue before becoming overextended. The momentum indicators like the Moving Average Convergence Divergence (MACD) are also trending upwards.
The bulls remain clearly in control, as BCH continues trading above all major moving averages. As long as the price holds above the 50-day SMA near $190, the path of least resistance is to the upside.
Upside Price Targets Based on Chart Patterns
Analyzing the BCH price chart, we can identify some potential price targets based on historical technical patterns.
The recent breakout above $200 triggered a bull flag continuation pattern. Measuring the height of the flagpole, this projects an upside target near $260. This would represent a 20% gain from current levels.
There is also a bullish ascending triangle that formed throughout April and May this year. A move above $220 could confirm this triangle pattern, pointing to a measured move target around $290.
If Bitcoin Cash can gain some momentum and break through these potential resistance levels, even higher targets above $300 are on the table.
Macro Trends Aligning for Altcoin Season
Zooming out to the broader crypto market landscape, conditions appear favorable for altcoins like BCH to potentially outperform Bitcoin in the coming months.
As Bitcoin consolidates after its parabolic 2021 rally, capital often rotates into large-cap altcoins. Ethereum and other Layer 1 protocols have seen strong upside momentum recently. This trend could continue, with Bitcoin Cash acting as a proxy for its bigger sibling, BTC.
Regulatory developments around stablecoins and emphasis on decentralization could also benefit Bitcoin Cash going forward. If traders gravitate toward decentralized, peer-to-peer digital cash, BCH stands to capitalize as one of the market's original P2P payment cryptos.
Price Prediction for Rest of 2022
Given the confluence of bullish technical and fundamental factors, I expect Bitcoin Cash to continue trending higher for the remainder of 2022.
My upside target for end-of-year 2022 is $350, which would represent a 61% gain from the current price of $217. This forecast is based on the bullish chart patterns in play, combined with the altcoin-friendly macro backdrop.
Of course, volatility is always a factor in crypto. Any break back below the 50-day SMA would invalidate this bullish outlook. However, as long as $190 holds as support, the path of least resistance is to the upside.
Will Bitcoin Cash Remain a Top 10 Crypto in 2023?
Bitcoin Cash currently ranks #10 by market capitalization among all cryptocurrencies. But with over 21,000 cryptos in existence today according to CoinMarketCap, competition is fierce. As we head into 2023, will BCH be able to maintain its place among the top 10 largest cryptocurrencies?
declinging market share
One warning sign for Bitcoin Cash is its declining market share over the past few years. In mid-2017, BCH comprised over 5% of the total crypto market cap. Today its market share has fallen below 1%.
As new blockchain projects grab mindshare and uptake, Bitcoin Cash has struggled to keep pace in terms of developer activity and real-world usage. Unless it can reverse this trend, its ranking may continue to fall.
On the other hand, Bitcoin Cash benefits tremendously from its association with the Bitcoin brand. This gives it builtin name recognition, especially among new crypto investors looking for "cheap Bitcoin".
The similarity in name and origins suggests Bitcoin Cash may have more longevity compared to other altcoins. Even if it declines further in market cap, it will likely remain entrenched as a reasonably-large cryptocurrency.
Mainstream merchant adoption is key
In order for BCH to solidify its place as a top 10 crypto, it needs to gain more traction with mainstream merchants for crypto payments. Its fast, low-cost transactions should make it appealing for payment use cases.
If the Bitcoin Cash community can continue onboarding major retailers and service providers, it may be able to carve out a niche and stabilize its market cap. Otherwise, usage and adoption could continue to lag.
Outlook unclear amid fierce competition
The outlook for Bitcoin Cash maintaining top 10 status remains uncertain. Determined development and effective marketing could return BCH to growth. But it faces an uphill battle given the sheer number of competing cryptos today.
My prediction is that Bitcoin Cash drops out of the top 10 by the end of 2023, but remains in the top 20. Only a major breakthrough in merchant adoption or network activity would likely change this forecast.
How Can Bitcoin Cash Stay Relevant in the Future Crypto Landscape?
As crypto evolves at a breakneck pace, Bitcoin Cash is at risk of losing relevance. How can BCH stay relevant in the future crypto landscape amid rapid innovation across blockchain and Web3?
Double down on payments
BCH must double down on its original use case as a payment-focused cryptocurrency. Faster, cheaper transactions give it an advantage for point-of-sale use and remittances.
Rolling out integrations with major payment processors could vastly increase real-world BCH transactions. Easy fiat on/off ramps via partnerships with financial institutions can also expand reach.
Build bridges across DeFi
While BCH isn't optimized for smart contracts, it can build bridges across the decentralized finance ecosystem. Wrapped BCH and liquid staking solutions allow users to leverage BCH in DeFi applications.
Integrations with leading DEXs and liquidity pools also enable new use cases. Providing on-ramps to DeFi for BCH holders expands utility.
Leverage scalability solutions
To support higher transaction throughput, the Bitcoin Cash network can leverage layer-2 scaling options like Hyperspace and smartBCH.
Off-chain state channels through these secondary layers offer vastly greater scalability. This is key for payments and DeFi use cases going forward.
Promote BCH-native Innovation
Supporting homegrown innovation on the BCH chain itself is also important. The SLP token standard enables issuance of new BCH-native tokens.
Growing the BCH NFT and metaverse ecosystems provides new use cases. And social engagement apps can leverage the BCH blockchain in novel ways.
Bitcoin Cash faces an uncertain future amid rising competition across crypto. Maintaining top 10 status will be difficult unless it can carve out a distinct niche going forward. But with a laser focus on payments, creative DeFi bridges and homegrown innovation, BCH can potentially stay relevant for years to come.
The key is translating its advantages in speed and fees into tangible real-world usage. If the supporters rally behind this usage-driven vision, Bitcoin Cash may defy the odds.