- Bitcoin Cash price has gone parabolic this month as it doubled.
- BCH halving will happen in December this year.
- Historically, cryptocurrencies tend to rally ahead of a halving event.
Bitcoin Cash price is in a relentless bull run as demand for BTC hard forks jumped. The BCH token soared to a high of $240, which is remarkable since it started the month at $115. This means it has become the best-performing large-cap coins in the world.
Why is BCH price surging?
There are four main reasons why Bitcoin cash price is rising. First, unlike many other altcoins, the Securities and Exchange Commission (SEC) does not consider it as security since it is a Bitcoin hard fork. Instead, the SEC and the FTC believe that it is a form of a digital commodity.
Therefore, Bitcoin Cash price is rising because the risk of delisting from large exchanges is almost zero. Earlier on Tuesday, Robinhood said that it had delisted some popular altcoins like Cardano and Polygon MATIC.
Second, Bitcoin Cash is jumping because of its cheaper price compared to Bitcoin. Its price currently stands at $240 while BTC is holding steady at $30,000. Therefore, with Bitcoin gaining traction, many retail traders believe that it is a good alternative. Besides, 1 BTC purchase can buy 125 Bitcoin Cash tokens.
Third, the countdown of Bitcoin Cash halving is continuing. The halving event is expected to happen on December 3rd this year. Halving is a period when the block rewards of a cryptocurrency are reduced. In most periods, cryptocurrencies tend to rally ahead of the halving event.
Finally, there is a growing consensus that the Securities and Exchange Commission (SEC) will accept the Blackrock Bitcoin spot ETF. Besides, the head of the Federal Reserve has accepted that BTC has a staying power. Therefore, if this happens, the likelihood of a BCH spot ETF will continue rising.
Read more: Here’s how to buy Bitcoin Cash.
Bitcoin Cash price prediction
The daily chart shows that the BCH price has been in a strong bullish trend in the past few days. As it rose, the coin jumped above the important resistance point at $164.54, the highest point on June 28th last year. It also rose above the psychological level of $200.
Bitcoin Cash crypto price has remained above all moving averages. However, oscillators like the Stochastic Oscillator and the Relative Strength Index (RSI) have all moved to extreme overbought levels.
Therefore, while the BCH price has more upside, there is a likelihood that coin will retreat in the coming days as investors start taking profits. If this happens, the next level to watch will be at $164.
