Bitcoin Cash price overbought as mining difficulty, hash rate jumps

July 03, 2023 04:33 PM AEST | By Invezz

Bitcoin Cash price overbought as mining difficulty, hash rate jumps — Image source: Invezz

BCH halving ahead

There were three main catalysts for Bitcoin Cash price in June. First, it jumped as several financial heavyweights applied for a spot Exchange-Traded Fund (ETF) in the US. These companies included firms like Blackrock, Fidelity, Invesco, and Cathie Wood’s Ark Invest.

While the ETF applications was on Bitcoin, analysts believe that BCH could benefit as well. For one, if the BTC fund is accepted, it will open the possibility of ETF proposals for other proof of work coins like BCH and Litecoin. That’s because the two coins emerged as a fork of Bitcoin and are not classified as securities.

Second, Bitcoin Cash price jumped because of the upcoming halving, which is scheduled for December. Halving is a period when block rewards in a proof-of-work network are reduced by half. It plays an important role in moderating supplies. Historically, cryptocurrencies tend to rally ahead of a halving event.

As a result, key Bitcoin Cash metrics improved in June. Bitcoin Cash’s hashrate jumped to 3.77 EH/s in June, the highest level since May 2021. Hash rate is an important metric that measures the health of a network. Bitcoin’s mining difficulty has also jumped to 476.54 G, which is its all-time high. Its mining difficulty started the year at 203 G.

Third, BCH price soared because of fear of missing out (FOMO) in the market. As its price surged more investors moved into the coin to avoid being left behind.

Bitcoin Cash price prediction

BCH chart by TradingView

The BCH price made a spectacular comeback in June as demand for the coin soared. As it rose, it managed to move above the important resistance level at $164.40, the highest level in July last year.

Bitcoin Cash price has jumped above the 50-day and 100-day moving averages, which is a positive thing for the coin. It also seems to be forming a bullish pennant pattern, which is usually a bullish sign.

However, it has also become severely overbought, with the Relative Strength Index (RSI) sitting at 80. Therefore, there is a likelihood that the coin will have a pullback in the coming days as sellers target the key support level at $250, which is about 15% below the current level.

The post Bitcoin Cash price overbought as mining difficulty, hash rate jumps appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.