Will BCH reach $160 Soon?

Kim Dot Com an entrepreneur, suggested his followers try Bitcoin Cash if they found that BTC to be too expensive.

BCH Current Market Status

Bitcoin Cash (BCH) has a circulating supply of 19,392,013 BCH coins, while its maximum supply is 21,000,000 BCH coins, according to CoinMarketCap. At the time of writing, BCH is trading at $119.99 representing 24 hours increase of 5.28%%. The trading volume of BCH in the past 24 hours is $124,706,983 which represents a 54.76% increase.

Some top cryptocurrency exchanges for trading BCH are Binance, Coinbase, KuCoin, Kraken, and more.

Now that you know BCH and its current market status, we shall discuss the price analysis of  BCH for 2023.

Bitcoin Cash (BCH) Price Analysis 2023

Bitcoin Cash (BCH) Price Analysis – Bollinger Bands

The Bollinger bands are a type of price envelope developed by John Bollinger. It gives a range with an upper and lower limit for the price to fluctuate. The Bollinger bands work on the principle of standard deviation and period (time). 

The upper band as shown in the chart is calculated by adding two times the standard deviation to the Simple Moving Average while the lower band is calculated by subtracting two times the standard deviation from the Simple Moving Average. When the bands widen, it shows there’s going to be more volatility and when they contract, there is less volatility. 

When Bollinger bands are used in a cryptocurrency chart, we could expect the price of the cryptocurrency to reside within the upper and lower bounds of the Bollinger bands 95% of the time. The above thesis is derived from an Empirical law. 

The sections highlighted by red rectangles in the chart above show how the bands expand and contract. When the bands widen, we could expect more volatility, and when the bands contract, it denotes less volatility. 

Currently, we could see that the bands are hugging, hence, the range of fluctuation for BCH has reduced. This signifies that there could be more consolidation for BCH. The BCH Bollinger bands are squeezing for the first time in 2023. 

Moreover, when considering the fluctuation of BCH, we could see that it has been following a zig-zag pattern inside the Bollinger band. Since BCH has retraced after touching the lower band, we could expect the prices to go higher.  Additionally, due to its zig-zag behavior, we may see BCH hitting the upper band in the future. 

Buyers might be discouraged to enter the market at this phase since there seems to be hardly left any space for BCH to go up inside the Bollinger band. To make more profit, buyer may want to concentrate on the volume. 

Furthermore, there is a tendency for BCH to keep on hugging the upper band. Given that BCH reciprocates this behavior when the bands tilt upwards, then, they could make profits. However, since, BCH will be in contact with the upper band, deciding on which point they would want to short would be hard. Hence, traders should do their due diligence.  

Bitcoin Cash (BCH) Price Analysis – Relative Strength Index

The Relative Strength Index is an indicator that is used to find out whether the price of a security is overvalued or undervalued. As per its name, RSI indicators help determine how the security is doing at present, relative to its previous price. 

Moreover, it has a signal line which is a Simple Moving Average (SMA) that acts as a yardstick or reference to the RSI line. Hence, whenever the RSI line is above the SMA it is considered bullish and if it’s below the SMA then it is bearish. 

When considering the first green rectangle from the left of the chart below we can see that the  RSI is above the signal. Hence, BCH is bullish and as a result, it is making higher highs. 

The second green rectangle shows that the RSI line (purple) is below the Signal line (yellow). As such, Bitcoin Cash (BCH)  is bearish or losing value. Therefore it is reaching lower lows as shown in the chart. 

Currently, the RSI of BCH is at 50.36 and it is tilting toward the overbought region. More importantly, when considering the area of trend reversals, BCH had a trend reversal quite close to 54 which is not too far from where BCH’s RSI is. Hence, we may see the price surge for some more time before the market corrects prices. The current status provides an excellent entry point for buyers as it seems like this is the beginning of exponential growth for Bitcoin Cash. 

Moreover, we could also use the RSI divergence to adjudicate trend reversals. For instance, if the RSI is making lower highs when the cryptocurrency is making higher highs, then we may say that although the token/coin is on a bullish trend it is losing value. As such, there could be a trend reversal in the future. 

Hence, if buyers spot a coin losing value while the RSI is increasing, then it is an indication that there could be a surge in the future. So, they may consider entering the market. On the other side, if the sellers see the RSI decreasing while the coin reaching higher, they may want to consider entering a short position, 

However, the RSI could also give false alarms for breakouts. Although we may expect, the prices to retrace if it goes to the oversold or overbought region, the prices also can stay in the oversold or overbought region for an extended period. As such, traders should be wary of it and let the market saturate before making vital decisions. 

Bitcoin Cash (BCH) Price Analysis – Moving Average

The Exponential Moving averages are quite similar to the simple moving averages (SMA). However, the SMA equally distributes down all values whereas the Exponential Moving Average gives more weightage to the current prices. Since SMA undermines the weightage of the present price, the EMA is used in price movements. 

The 200-day MA is considered to be the long-term moving average while the 50-day MA is considered the short-term moving average in trading. Based on how these two lines behave, the strength of the cryptocurrency or the trend can be determined on average. 

In particular, when the short-term moving average (50-day MA) approaches the long-term moving average (200-day MA) from below and crosses it, we call it a Golden Cross.

Contrastingly, when the short-term moving average crosses the long-term moving average from above then, a death cross occurs. 

Usually, when a Golden Cross occurs, the prices of the cryptocurrency will shoot up drastically, but when there’s a Death Cross, the prices will crash. 

Whenever the price of cryptocurrency is above the 50-day or 200-day MA, or above both we may say that the token is bullish (Red rectangle). Contrastingly, if the token is below the 50-day or 200-day, or below both, then we could call it bearish (Blue triangle section).  

The chart above shows how the dawn of 2023 brought about an increase in prices. However, briefly after rising BCH started falling and resorted to the support of the 200-day MA. In the nick of time, the golden cross happened and BCH was able to recover shortly after finding Support at the 200-day MA. 

Currently, BCH has just managed to rise above the 200-day MA after being just below it. Hence, this may be the start of a bull run and may seem like a good spot for buyers to enter. However, the 50-day MA seems to approaching the 200-day MA below, in the event they intersect, there might be a death cross and BCH could drop drastically. 

May be those looking to enter a long position should wait until BCH forms a few more candlesticks above the 200-day MA. This is because not every coin responds to the golden cross and death cross as in the book. 

Bitcoin Cash (BCH) Price Analysis – Rate of Change

The Rate of Change Indicator is a momentum oscillator, that measures the change of the current price against the past price a few (n) periods ago, in percentage. As long as the price is rising ROC will be positive. But, the ROC indicator will reach the negative zone when the prices reduce. Increasing values in either direction, positive or negative, indicate increasing momentum, and moving back toward zero indicates diminishing momentum.

Unlike the RSI, ROC has no set overbought or oversold regions, it rather depends on a trader’s discretion. Traders often tend to find the areas in the positive and negative zones where the trend changes have happened in regularity. Based on this they could mark their bounds for overbought and oversold regions.

ROC could also be used as a divergence indicator that signals a possible upcoming trend change. Divergence occurs when the price of a stock or asset moves in one direction while its ROC moves in the opposite direction.

For example, if a stock’s price is rising over a period of time and registering higher highs while the ROC is progressively moving lower, or making lower highs, then the ROC is indicating bearish divergence from price, which signals a possible trend change to the downside. The chart shows an example of the above scenario. The same concept applies if the price is moving down and ROC is moving higher.

Additionally, the zero line crossover could be used to signal trend changes. However, depending on the number used for n (periods) in the indicator the signals may come in early or late.  

BCH’s extremely overbought regions are marked as Overbought Region 1 at 8.06, Overbought Region 2 at 15.89, and Overbought Region 3 at 37.74. BCH’s trend reversed many times after it reached the Overbought Region 1. Meanwhile, BCH’s Oversold Regions are marked as Oversold Region 1 at -10.01, Oversold Region 2 at -21.35, and Oversold Region 3 at -33.76.

Currently, the ROC indicates a value of -3.17 and the line is heading toward the zero line. This indicates that the bearish trend is fading away and that the bulls are taking over. As such, this presents an excellent entry point for those going long. However, buyers may need to wait until the ROC crosses the zero line to confirm it is bullish. 

Bitcoin Cash (BCH) Price Prediction 2023

When considering the chart above we could see that BCH was testing Resistance 1 at $136.7 since the beginning of 2023. Despite testing Resistance 1 multiple time, Bitcoin Cash was able to break and move above Resistance 1 and reach Resistance 2 at $145.9 just once. However, BCH did not have the momentum to stay at Resistance 2, hence it fell.  

Currently, we could see that BCH has formed two bullish candlesticks, the latter bigger than the former. Hence, this could be the start of a bull run. Like at other times, we see BCH testing Resistance 1 in the future. However, if BCH is able to break Resistance 1, it may reach Resistance 2. 

Nonetheless, Resistance 2 is no stronghold for BCH, hence, it could break and move to Resistance 3 at $155.9. 

Contrastingly, if the bears take over the BCH may seek assistance from Support 1 at $ 108.7. However, in the event that Support 1 is not able to hold BCH’s fall, then it could fall to Support 2 at $97.6.

Bitcoin Cash (BCH) Price Prediction – Resistance and Support Levels

When looking at the chart above, we could see that BCH rose exponentially from 2020 to mid-2021. However, this exponential rise was also followed by a fall that imitates the mirror image of the rise. Since 2021 was the year after bitcoin halved we could see that drastic rise in price. Moreover, since 2024 will be the next Bitcoin halving, we may see a big surge in 2025. This may result in BCH reaching more all times and new resistance levels being produced.

Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. CoinEdition and its affiliates will not be held liable for any direct or indirect damage or loss.

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