Bitcoin Cash jumps ahead of $135: Will BCH hit more profits?
Bitcoin Cash (BCH) addresses scalability and transaction processing issues in the original Bitcoin network. Its block size limit is larger, allowing faster and cheaper transactions than Bitcoin. BCH has a different monetary policy with a slightly higher inflation rate and a gradual block reward reduction over time.
BCH is used as a digital store of value and a means of payment, providing a more accessible alternative to traditional fiat currencies. It is supported by a community of users who believe in its potential as a decentralized, peer-to-peer electronic cash system.
Overall, the tokenomics of BCH aim to create a fast, low-cost, and accessible alternative to fiat currencies while also serving as a secure and decentralized store of value. BCH has reached a market capitalization of $2.6 billion due to the sudden rise in buying sentiment across the crypto space.
The uncertainty witnessed in BCH price action has eased with the confirmed breach of 200 EMA. With such a strong presence of buyers to control the downfall in BCH values, a spike was expected.
While there might be some offloading of tokens to book profits, the shorter duration presence of BCH could propel the token towards $155. Immediate support is hovering close to the lower band of the previous consolidation level. Read our Bitcoin Cash price prediction to know in which direction the token will trade in the coming years!
Assessing the price action of Bitcoin Cash, we can expect some rally towards $155 in the short term, as long as the support of 200 EMA is not retested. The support from $129 would be critical in surpassing the short-term resistance providing relief to buyers struck at higher levels. $95 is long-term support that would be important if untouched. While the token is moving significantly above, we can expect a new rally towards the $200 mark to be sustained.
On a weekly candlestick pattern, BCH is getting wicks on both the top and bottom end of its candlestick. This indicates turmoil among the sellers and buyers. Only a reinforced breakout can push BCH to new highs and out of previous rejection levels on long-duration charts.
After the resistance is around $160, this token has no price action-based resistance or previous challenging positions. Hence, an uptrend would result in a continuous rally of BCH tokens.