Bitcoin Cash is among the best-performing cryptocurrencies today, rising by 17% in the last 24 hours. Volumes are rising as well, up 120% in 24 hours to hit a high of $1.753 billion.
Bitcoin Cash is a fork of Bitcoin that came into existence in 2017. The critical difference between the two is that Bitcoin Cash is more scalable and functions much better as a currency for everyday payments.
Despite a giant run up in price #BCH fees remain tiny fractions of a penny so it can be used as money.#BitcoinCash pic.twitter.com/OSLrfY70DH
— ThrowingStones (@throwingstones7) March 28, 2024
However, Bitcoin Cash retains the best aspects of the Bitcoin network, such as a high level of decentralization, which makes it a trustless and permissionless mode of payment. Bitcoin Cash stands so well to the ideals of decentralization that it is one of the top cryptocurrencies that even the SEC has never considered a security.
BCH Halving Coming Up On April 4
The ongoing Bitcoin Cash price rally is mainly tied to the upcoming block halving scheduled for April 4. Investors are buying into BCH, expecting its price to be much higher post-halving prices. There is a rational reason behind the investor excitement around Bitcoin Cash. Just like the upcoming Bitcoin halving that is coming up on April 20, Bitcoin Cash will reduce the amount of mined supply entering supply by two.
The Bitcoin Cash Halving, just like Bitcoin, happens every four years. Miners are rewarded with 6.25 BCH for mining BCH. After April 4, the mining rewards will be reduced to 3.125 BCH. This means BCH is about to get hit with a supply shock at a time when its demand is on the rise.
By applying the economic laws of demand and supply, the odds are that Bitcoin Cash could be headed to much higher prices around the halving period and long term. The potential for Bitcoin Cash to quickly double in value after the halving is relatively high, hence the rising interest from investors.
Open Interest In BCH Doubles To $500 Million In A Week
Besides the sharp drop in the mined supply likely to play into the price, FOMO is expected to see Bitcoin Cash hit higher prices in the short term. Investors usually have many expectations around halving, which is already happening with Bitcoin Cash. In the last 24 hours, open interest in Bitcoin Cash has surged to $500 million. This is a substantial increase compared to the previous week when open interest in Bitcoin Cash stood at $213 million. This points to more traders expecting a significant spike in the BCH post-halving price; as more BCH longs open, the odds of a price spike to $1000 or more increase substantially.
Adding to the potential Bitcoin Cash FOMO is the fact that it is a mainstream cryptocurrency, one that is listed on all the top-tier cryptocurrency exchanges. Anyone looking to buy Bitcoin Cash can easily do so on Binance and Coinbase, among others. This means there is an easy avenue for retail money to FOMO into BCH and easily push the price to $1000 or more after the halving. Some analysts already project that Bitcoin Cash could be headed to highs of $2000 or more before or after the halving event.
Already up 50% after this tweet. More ahead. $2000+ in the coming months. $BTC Maxi will be coping hard. $BCH to the moon!#bch #btc #defi #p2p #cash #money https://t.co/FiB7NeRfxp pic.twitter.com/mtw7nwpnWr
— Thunder.BCH (@ThunderBCH) March 27, 2024
In the section below, we make a Bitcoin Cash price prediction to determine how it could trade now that bullish momentum is building up ahead of the halving.
Bitcoin Cash Price Prediction – Is A Rally To $1000 Underway?
Bitcoin Cash is currently trading at $572, up by 15% when going to press. The market capitalization of Bitcoin Cash has also shot up by 15% to hit a high of $11.262 billion in the last 24 hours.
After trading in a narrow range between $203.4 and $307.1 for months, Bitcoin Cash has broken out in one long bullish candle. This signals strong demand and puts Bitcoin Cash on course to hit $703, the next critical resistance level. If bulls push through $703, then prices above $700 could be tested in the short term.
The Case For BCH Tests $1000
Bitcoin Cash has already shown bullish, solid momentum ahead of the halving. This means as the halving date draws closer, there will be an increase in buying pressure. This is already evident in the sharp rise in open interest in BCH from $237 million to $500 million. With the broader market also showing bullish signals, Bitcoin Cash has a confluence of positive factors that could see BCH tests the $1000 that many analysts expect within the halving period.