Bitcoin cash price prediction: is the altcoin a dip buy?
#Bitcoin cash
Like many altcoins in April, Bitcoin Cash (BCH), another chip off the bitcoin (BTC) block, had a bumpy ride and ended up slipping in value by 18% so far down to $307.27 today (28 April)
This price gives it a cryptocurrency ranking of 25th with a market capitalisation of $5.85bn.
The coin has been on a long bearish trend since it was valued at over $700 just last November. It would be optimistic to suggest that it could head back to those old rich pastures any time soon; there have been false dawns most recently in March and the trend remains bearish.
So, how does BCH differ from bitcoin (BTC) and bitcoin gold (BTG)? What is a plausible target price for the near future?
In this article, we take a look at recent analysis, projections and BCH coin price predictions to help you consider whether to buy, sell or hold Bitcoin Cash.
Bitcoin cash targets high transaction volumes
Bitcoin cash is a hard fork, or spinoff, from the Bitcoin blockchain that occurred on 1 August 2017. The split came about because the Bitcoin community could not reach a consensus on a proposal to increase the network capacity to allow for more transactions.
Anyone who held bitcoin at the time received bitcoin cash, which has a higher maximum block size. The protocol initially increased the block size from 1MB to 8MB, and it now supports blocks of up to 32MB. The developers are researching the possibility of “massive future increases”. The higher block size enables bitcoin cash to process far more transactions per second while keeping fees low – a solution to the payment delays and high fees that some bitcoin users experienced.
Bitcoin cash has a different aim than bitcoin gold, launched in October 2017, which focuses on restoring decentralised mining after it became dominated by large mining farms. BCH aims to be peer-to-peer electronic cash – simple and fast to use, with low fees for sending money globally. The low fees enable micro-transactions, like tipping content creators and rewarding app users small amounts of money.
There was a hard fork of bitcoin cash in November 2018, as disagreements continued in the community about the maximum block size for transactions, resulting in the creation of bitcoin SV (BSV). The block size limit is unbounded and can scale in response to the market. In August, the maximum block size quickly increased from 1GB blocks to a 2GB block processed on 18 August – claimed to be the largest block that’s been mined on a public blockchain so far.
Like bitcoin, the supply of bitcoin cash is capped at 21 million coins. There were 19.05 million coins in circulation, according to CoinMarketCap on 28 April. The fixed supply is intended to limit inflation and make bitcoin cash a sound store of value.
BCH price falls after three-month high
The bitcoin cash price chart climbed to an intraday high of $801.49 on 6 September, its highest level since late May, when cryptocurrencies retreated from their sharp rally. While bitcoin reached an all-time high above $64,000 in April, BCH peaked at $1,635 on 16 May, well below its record high of $4,355 of December 2017 during the previous cryptocurrency bull run.
The price had retreated to an intraday low of $596 by 13 September, although it ticked higher to $654 on 16 September after the chief executive of US cinema chain AMC said that the company would accept bitcoin cash along with bitcoin, ether (ETH) and litecoin (LTC) as payment for online tickets and concessions by the end of the year.
Cryptocurrency enthusiasts: you likely know @AMCTheatres has announced we will accept Bitcoin for online ticket and concession payments by year-end 2021. I can confirm today that when we do so, we also expect that we similarly will accept Ethereum, Litecoin and Bitcoin Cash. pic.twitter.com/uKcFyQotoJ
— Adam Aron (@CEOAdam) September 16, 2021
Adoption of bitcoin cash has been increasing, with digital payments company PayPal (PYPL) announcing on 23 August the rollout of a new service in the UK that allows customers to buy, hold and sell bitcoin cash along with bitcoin, ether and litecoin via the PayPal website or the mobile app. The move expands the company’s cryptocurrency service offering outside of the US.
On 10 September, cryptocurrency investment company Greyscale announced that it had registered the Grayscale Bitcoin Cash Trust with the US Securities and Exchange Commission (SEC), along with trusts for ethereum classic (ETC) and litecoin, joining its existing bitcoin, ethereum and Digital Large Cap trusts. It had announced plans to form the new trusts in April.
The company said:
“This development aligns with Grayscale’s intent to move each of its digital currency investment vehicles through the product development pipeline described in an April 2021 blog post, ultimately to convert each product into a digital currency ETF.”
Cryptocurrencies like bitcoin cash, bitcoin and litecoin got a boost in early October when US Bank, the country’s fifth largest retail bank, first offered a cryptocurrency custody service with assistance from sub-custodian NYDIG for fund managers to store their private keys.
Later in October, a leading provider of ETFs launched the first bitcoin linked service in the US. Called Pro Shares Bitcoin Strategy ETF (BITO), it gives investors the chance to take their bitcoin returns through a brokerage account. BITO can be bought and sold like a stock and, says the company, which “eliminates the need for an account at a cryptocurrency exchange and for a crypto wallet”.
The move will provide a boost to BCH as CEO Michael L. Sapir explained: “BITO will open up exposure to bitcoin to a large segment of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a cryptocurrency provider and creating a bitcoin wallet or are concerned that these providers may be unregulated and subject to security risks.”
The volatility of coin pricing was demonstrated in November when a fraudulent press release stating that supermarket major Kroger would accept the coin during the holiday season caused a price spike of 4% in 15 minutes.
What are the forecasting sites' BCH price predictions? Is the outlook positive? Do they forecast any potential for the coin to return to its previous highs?
Bitcoin cash price predictions 2022-2030: where next for the coin?
Short-term sentiment for BCH was neutral, with the price around $380 at the time of writing (28 April), according to CoinCodex. There were eight technical analysis indicators giving bullish signals, compared with 22 bearish signals. The simple (SMAs) and exponential moving averages (EMAs) were showing sell signals, while the moving average convergence divergence (MACD) was neutral as was the relative strength index (RSI) at 46.74.
Its short term bitcoin cash coin price prediction suggested the price would be almost unchanged $305 by 3 May.
In the meantime, the BCH crypto price prediction from Wallet Investor was bullish and it predicted that the average price could hit $423 in a year's time and then reach $782 by this time in 2027.
The BCH prediction from DigitalCoin projected that the price might average $404 in 2022, then continue rising to an average of $589 in 2025 and $982 in 2028.
The bitcoin cash prediction from Price Prediction was the most bullish, suggesting the coin has the potential to climb from an average of $389 in 2022 to $1,802 in 2026 and then to an average price of $8,346 by 2030.
It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making accurate predictions as to what a coin’s price will be in a few hours very difficult, and even harder to give long-term estimates. As such, analysts and online forecasting sites can get their predictions wrong.
We recommend that you always do your own research, and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decisions. And never invest more than you can afford to lose.
FAQs
Is bitcoin cash a good investment?
Cryptocurrencies are highly volatile assets, making them riskier than other potential investments. Whether BCH is a good investment for your portfolio depends on your risk tolerance and personal financial position, as well as your investing goals. Evaluate the level of risk you are prepared to accept before investing.
Will bitcoin cash go up?
The forecasters' bitcoin cash crypto price prediction is the price will rise. Whether the price moves up will depend on interest from cryptocurrency investors and the direction of prices across the broader markets.
Should I buy bitcoin cash or bitcoin?
There are pros and cons to investing in both bitcoin and bitcoin cash (BCH). Bitcoin is established as the world’s largest cryptocurrency, while bitcoin cash offers an alternative that also has potential to grow. You should do your own research to decide which coin, if either, is a better fit for your investing style.
What will bitcoin cash be worth in 2030?
Long-term expectations suggest that BCH could make large gains over the next few years. The Price Prediction forecasting site indicates the bitcoin cash price could climb to over $8,000 by 2030. In the meantime, it’s important to keep in mind that prediction sites and analysts can and do get their estimates wrong.
prediction: Will the altcoin rise?
The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.