- Bitcoin price has retreated this week because of the ongoing congestion in its network.
- Bitcoin Cash and Bitcoin SV are seen as viable alternatives to BTC.
Bitcoin SV and Bitcoin Cash prices jumped on Tuesday as investors moved to Bitcoin alternatives amid the rising congestion. BCH price jumped to a high of $131 while BSV rose to $40. The two were up by more than 20% in the past 24 hours while Bitcoin eased to $27,500.
Bitcoin congestion
One of the biggest news this week is about the rising congestion in the Bitcoin network. On Monday, a major congestion happened in BTC, causing transaction costs to surge. Delays also rose, pushing Binance to suspend Bitcoin transactions for a while. The costs of sending transactions in the network jumped sharply as well. According to YCharts, the average Bitcoin transaction fee has jumped to $30.
Many other exchanges were not affected since they have enabled the Lightning network that is known for speed and lower costs. However, the delays and elevated costs pushed more people to alternatives to Bitcoin.
Bitcoin Cash and Bitcoin SV, which are built using the same technology as Bitcoin were seen as viable alternatives since they have faster speeds and lower transaction costs. Bitcoin Cash has an average transaction fee of 0.0003 BCH while Bitcoin SV has an average fee of $0.00015. Further, Bitcoin SV can process over 50,000 transactions per second (tps).
Bitcoin Cash price prediction
The 4H chart shows that the BCH price has been in a downward trend after it peaked at $153.42 earlier this year. At its lowest level this week, Bitcoin Cash was about 30% from its highest level in 2023. Now, the coin has jumped above the 25-period and 50-period moving average on the four-hour chart. The volume has also jumped.
Read more: How to buy Bitcoin Cash.
Meanwhile, Bitcoin Cash has jumped above the important resistance point at $120, the lowest point on March 30th. Therefore, I suspect that BCH price will retest the support at $120 and then continue the bullish trend. If this happens, the next level to watch will be at $130.
Bitcoin SV price prediction
The 4H chart shows that the BSV price went parabolic on Tuesday, becoming one of the best-performing cryptocurrencies in the world. As the coin jumped, it moved above the key resistance point at $37.97, the highest point on April 16. The coin also jumped above all moving averages while volume rose.
Read more: How to invest in Bitcoin SV.
Therefore, I suspect that this could be a dead cat bounce since the coin was near a record low this week. It could also be a pump and dump scheme. As such, while Bitcoin SV price could continue rising, there is a likelihood that it will drop and retest the support levels at $37 and $34.
