Can BCH get to the moon?

Bitcoin cash has been on a run upward in the last 24 hours as prices crossed above $250,00 for the first time this year. At the time of writing, the beautiful bride cryptocurrency has just retreated to $288,51 after marking a new move higher of $290,50. BCH's recent volatility upsurged has triggered a lot of reactions from users as many jumps to reap from the upsurged by either swapping the increased gain or exchange to Fiat currency. The recent BCH volatility upsurged could be seen or regarded as a big relief after having been in the red zone for a long time. It is for this that everyone who treasured this bride cryptocurrency would wish BCH continue to the moon, and that's certainly what I want, but can we get there? Could BCH break the resistance limit by crossing $300,00 this year? Several factors will need to be at play for BCH to break past the horizon and compete fairly with Bitcoin.

Currently, Bitcoin seems not to be slowing down as the bellwether cryptocurrency crossed $18,000 and it is forecasted that other Altcoins such as BCH, Ether, etc would follow. However, BCH can maintain a continued volatility upsurge should the factors discussed below be at play. Can BCH get to the moon? Let examine these factors.w

Institutional demand

Essentially, the dominance of any cryptocurrency assets depends on the volume of investment in it, and such a large volume of investment can only come from institutional investors. Institutional investors in BCH can increase confidence among lesser investors and also leads to higher demand, and a higher demand leads to a higher price. BCH needs more institutional investors just as Corporates such as Microstrategy and Square have done with Bitcoin by purchasing it as their treasury asset. And recently, Paypal has also joined the numbers of institutions with higher volume investment in cryptocurrency. Should PayPal make BCH its mainstream asset on offer to its billions of customers, BCH will certainly get to the moon and beyond.

Do we have some whales around?

The number of whale investors in a coin impact the price of the coin. Whales are large investors with up to 10000 BCH and above. These are traders that trade at a higher level with higher investment. The increasing number of these types of investors reduces the circulating supply, weakening bearish sentiment. More so, should whales decide to hold BCH due to an anticipated rise in price in the future, BCH has a great chance to keep going upward in price.

BCH correlation with Bitcoin

Bitcoin is undoubtedly the strongest among cryptocurrencies and seems it will remain so for a long time. The correlation between Bitcoin and BCH has a strong effect on the latter. It is such that when Bitcoin goes up investors shift based to gain from the volatility upsurged moving funds from Altcoins to Bitcoin which in turn causes a dipped down lower for Altcoins. A kind of capital rotation exists in the Crypto market and this has effects on the price of Altcoins such as BCH, LCT, etc. And should BCH maintain a steady high, investors hoping to gain from the upsurged can move funds from Bitcoin to BCH. Demand unbalance for Bitcoin will significantly impact BCH positively.

Head mentality and market move

The majority of Crypto investors invest based on psychological bias rather than basing their judgment on market analysis or fundamentals. It is a common practice among Crypto traders that when a particular coin rise or the demand is growing, they tend to follow along. Such practice influences the price of individual coins causing upward and downward movement. More armature traders are investing in Bitcoin at the moment not because they understand the fundamentals of trading but because of its recent steady rise in price.

As BCH explodes into action as it is now, traders hoping to gain from the momentum can move funds from other Altcoins to BCH. This FOMO behavior though maybe for a short time could lead to BCH higher performance.

Adoption or mainstream acceptance

As simple and flexible as the Bitcoin cash concept seems, yet we cannot deny the fact that BCH still has a long way to go in terms of adoption or mainstream acceptance when compared to Bitcoin. Regardless of whatever shortcomings involved in Bitcoin usage, we cannot also deny the fact that Bitcoin is way ahead of other cryptocurrencies in popularity. Adoption or mainstream acceptance can lead BCH to the moon but as of now majority still don't know about BCH. All that most know about cryptocurrencies is "Bitcoin", to some other Bitcoin is cryptocurrencies and cryptocurrencies is Bitcoin. Anyone coming into cryptocurrencies usually goes for Bitcoin because that is what they have heard about. And not only individuals but mainstream financial institutions going into cryptocurrencies are also offered Bitcoin because it all they have heard about.

Mainstream acceptance of BCH would lead to more people using the coin. Merchants could serve as mainstream financial institutions, the more merchants accepting BCH the more people get to use the coin and the more popular BCH becomes the higher the price will be.

At present, BCH is well above $288,65, an all-time high after a long period in the Deep and no one is sure if the momentum could survive for a long time. Should you considered reaping the gain, you might want to swap some or Lock up your gain to counter future volatility.