The Bitcoin cash price is hovering near its highest point in July 2018 as investors react to the strong performance in the cryptocurrencies industry. The BCH price is trading at $709, slightly below the year-to-date high of $773.
Fundamental analysis
The focus this week has been on Bitcoin, whose price crossed the important $50,000 milestone yesterday. Other currencies have also done well recently. For example, the Bitcoin Cash price has jumped by more than 34% in the past seven days, bringing the total market cap to more than $13 billion. This makes it the 9th biggest digital currency in the world.
Bitcoin cash is often viewed as a proxy for Bitcoin. Many small investors tend to invest in it because of its low nominal price compared to the main BTC. In fact, one BTC can now buy about 70 Bitcoin cash. The currency has also recently gained support from some prominent figures, including Kim Dot Com, the New Zealand tech entrepreneur.
Bitcoin Cash price prediction
Turning to the daily chart, we see that the BCH price has been on a strong uptrend in the past few months. It has risen by more than 250% since August last year. And this week, the price moved above the important resistance at $653, which was the previous highest point. In fact, the currency managed to move above what seems like a cup and handle pattern.
Therefore, in the longer term, I believe that the Bitcoin Cash price will rise to $1,000. This will mostly happen if the main Bitcoin continues to receive institutional support. However, in the near term, a drop to $600 will lead to a short-term correction.
The Bitcoin Cash and Ripple prices are flying high today as part of the massive cryptocurrency rally. The BCH and XRP prices have risen by more than 10% in the past 24 hours, bringing their total market cap to more than $14.3 billion and $21 billion, respectively.
News: The Ripple and Bitcoin Cash prices are not the only ones rallying. Indeed, the price of Bitcoin, Polkadot, and other digital currencies has rallied in the past 12 hours. That has brought the total market cap of digital currencies tracked by CoinMarketCap to more than $1.3 trillion. Bitcoin itself is now valued at more than $880 billion.
The BTC has jumped after Tesla announced that it was acquiring Bitcoin worth more than $1.5 billion. As such, investors believe that acceptance has come to the crypto market, which will also push other currencies higher.
Ripple price prediction
The XRP price has been relatively resilient recently. In December, it dropped to a multi-year low of $0.1740 after the SEC launched a major investigation. Many exchanges suspended it.
It then rebounded in January as part of the Wall Street Bets euphoria and reached a high of $0.7556. As this euphoria waned, the Ripple price tumbled to $0.34, a 54% decline. Since then, it has been attempting to rebound and is now trading at $0.47.
Unfortunately, the current rebound of XRP will likely not last based on technical patterns. The daily chart shows that it has formed a bearish flag pattern that is shown in blue. Therefore, in the near term, the price will likely resume falling, as shown below.