Bitcoin Cash (BCH) has advanced from $321.92 to $568.29 since November 04, 2024, and the current price stands at $517.
However, some crypto analysts suggest that Bitcoin Cash might be in overbought territory, signaling a potentially overheated trend. If Bitcoin Cash does retreat from its important support at $500, significant sell-offs could follow, as traders and investors rush to secure their profits.
CryptoQuant has reported another negative development this week: long-term Bitcoin (BTC) holders have liquidated over 728,000 BTC in the past 30 days. At current market prices, this amounts to nearly $69 billion worth of Bitcoin. If the price of Bitcoin falls below important support levels like $90,000 or $85,000 it might worsen the situation and drag the entire cryptocurrency market down with it.
This could be particularly problematic for cryptocurrencies like Bitcoin Cash (BCH), as many rely on Bitcoin’s bullish momentum to sustain their own upward trends. So where is Bitcoin Cash’s (BCH) price going next, and what can we expect from December 2024?
Today, Crypto Lists will discuss Bitcoin Cash (BCH) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Bitcoin Cash is riding the ongoing bull market
Bitcoin Cash has established itself as one of the most valuable cryptocurrencies globally which continues to attract the interest of investors. Created by a faction of Bitcoin users, this digital currency was developed to implement specific technical changes designed to expand Bitcoin’s reach to a broader audience.
Supporters of Bitcoin Cash generally held the view that Bitcoin needed adjustments to enhance its competitiveness with conventional payment systems such as Visa and PayPal. Additionally, they supported lowering the fees users pay for transactions, preferring a model that shifts these costs to other parts of the network.
To achieve this, Bitcoin Cash modified Bitcoin’s code and released a software version with features incompatible with Bitcoin. This resulted in lower fees and the ability to process more transactions due to an increased block size. Many analysts believe that by offering cheaper transactions, Bitcoin Cash will become the preferred choice for online transactions, thereby increasing its value.
The price of Bitcoin Cash (BCH) has skyrocketed from levels that were below $350 on November 04, 2024, and it has reached levels above $560 last trading week. Bitcoin Cash (BCH) is currently priced at $517 and some crypto analysts caution that the BCH may still be in overbought territory, indicating a potentially overheated market trend.
Supply: 19,199,644 / 21,000,000
Release date: August 1, 2017
Description: Discover Bitcoin Cash and be part of the cryptocurrency revolution.
Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.
Concerning trend
CryptoQuant has highlighted a concerning trend this week; long-term Bitcoin (BTC) holders have sold off over 728,000 BTC in the last 30 days, equating to approximately $69 billion at current prices. A further decline in Bitcoin’s value below critical support levels, such as $90,000 or $85,000, could exacerbate the situation, potentially dragging down the broader cryptocurrency market.
As a Bitcoin fork, BCH’s performance is closely tied to Bitcoin’s dominance in the cryptocurrency space. A significant drop in Bitcoin’s value can lead to reduced investor confidence and capital outflow from the broader crypto market, including assets like Bitcoin Cash (BCH) that rely on Bitcoin’s bullish trends to sustain their upward movement.
Investors should keep in mind that Bitcoin Cash (BCH) carries its risks as an investment, and history has shown many times that its price can fluctuate dramatically over short periods, leading to substantial gains or losses.
In the weeks to come, Bitcoin Cash (BCH) will remain influenced by the general situation in the cryptocurrency and hence, engaging in investments related to BCH demands deliberate consideration. Undertaking comprehensive research and evaluating one’s risk tolerance are fundamental measures prior to committing to any investments within this sphere.
Technical analysis for Bitcoin Cash (BCH)
Bitcoin Cash (BCH) has advanced from $321.92 to $568.29 since November 04, 2024, and the current price stands at $517. There are fears that Bitcoin Cash may still be in overbought territory but as long the price of BCH is above the line that I marked on the chart below, there is no risk of a bigger sell-off.
Important support & resistance levels for Bitcoin Cash (BCH)
On this chart (the period from February 2024), I marked important support and resistance levels that can help traders understand where the price could move. Bitcoin Cash (BCH) weakened from its recent highs, but if the price advances above $600, the next target could be resistance at $700. The important support level is $500, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $450. If the price drops below $450, which also represents very strong support, the next target could be located around $400.
What speaks for the rise in the Bitcoin Cash (BCH) price
The cryptocurrency market has historically been known for its volatility, and while efforts were being made to stabilize the market, fluctuations are still expected to be a common occurrence. The overall sentiment on the cryptocurrency market could play a very important role in BCH’s price trajectory in the weeks ahead and the positive developments could trigger substantial price increases.
An increase in the number of transactions in the last two weeks for BCH is something that could drive the price higher and if the price advances above $600, the next target could be resistance at $700. Traders should consider that the price of Bitcoin Cash is correlated with Bitcoin, and if the price of Bitcoin jumps above $100,000, we can see BCH at higher price levels.
What indicates the downfall of Bitcoin Cash (BCH)
BCH’s ability to maintain above $500 support is very important and falling below this level could indicate the potential for an even larger sell-off. Many investors in cryptocurrencies are driven by speculation rather than fundamentals, which can lead to irrational market behavior, and crypto prices can fluctuate dramatically over short periods, leading to potential big losses.
Before investing in Bitcoin Cash, it’s crucial to do your research, understand the risks, and consider your investment goals and risk tolerance. The price of Bitcoin Cash is also correlated with the price of Bitcoin, and if the price of Bitcoin drops again below the $90,000 price level, that would certainly have a negative influence on the price of BCH.
What do analysts and experts say?
Bitcoin Cash (BCH) has maintained strong support as Bitcoin surged past $99,000, with many analysts attributing the positive momentum in the cryptocurrency market to Donald Trump’s decisive victory in the U.S. presidential election. However, some crypto analysts warn that Bitcoin Cash may be in overbought territory, indicating a potentially overheated trend.
If BCH falls below its critical support level of $500, it could trigger substantial sell-offs as traders and investors move to lock in profits. Analysts and traders often closely watch the activity of crypto whales because the behavior of crypto whales can influence market sentiment. When a whale makes a substantial sale, it can be seen as a bearish sign, potentially attracting more sellers.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.
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