- Bitcoin Cash price soared to the highest point since June 12.
- Bitcoin and Bitcoin Gold also rallied after the FOMC decision.
- BCH could soon soar to about $200 if the momentum sticks.
Bitcoin Cash price surged to the highest point since June 12th of this year as investors shrugged off the extremely hawkish Federal Reserve. BCH rose to a high of $148, which was about 53% above the lowest level this year. As a result, the total market cap jumped to over $2.7 billion. Similarly, Bitcoin Gold price surged by about 30%.
Why are BCH and BTG soaring?
Bitcoin Cash and Bitcoin Gold are proof-of-work cryptocurrencies that came out of the original Bitcoin. They both came out of hard forks that took place in 2017 during a period when major players were afraid about the direction that BTC was taking.
Learn more about Bitcoin Gold.
Since then, the two have had limited success, which have seen them overtaken by other popular cryptocurrencies like Cardano, Solana, and even Dogecoin. On-chain data show that their usage has been relatively weaker compared to the dominant BTC.
The BCH and BTG prices are rising as investors reflect on this week’s Fed interest rate decision. On Wednesday, the Fed decided to hike interest rates by 0.75% as it continued to fight the soaring inflation. The committee also signaled that it will continue hiking rates in the coming months.
Bitcoin Cash prices rose after the decision because it was already priced in. This means that most analysts were expecting that the bank will hike by 0.75%. At the same time, the hike was smaller than the 100 basis points that some analysts were expecting.
The rate hike was met with cheers in Wall Street as the major indices like the Dow Jones and Nasdaq 100 indices rising by more than 1.50%.
Bitcoin Cash and Bitcoin Gold prices are soaring as investors buy the dip. The overall thinking is that digital coins have seen their worst days during the recent sell-off.
Bitcoin Cash price prediction
BCH and BTG have a close correlation, meaning that this analysis will apply to the two of them. The four-hour chart shows that the BCH price has been in a strong bullish trend in the past few days. It managed to cross the important resistance at $135.20, which was the highest point on July 24th.
The coin has moved above the 25-day and 50-day moving averages and the ascending trendline shown in red. The Relative Strength Index (RSI) has moved above the overbought level. Therefore, the coin will likely continue rising as buyers target the key resistance at $160. In the near term, we can’t rule out a situation where it rises to $200. Learn about how to buy Bitcoin Cash.
