Bitcoin’s hard fork, Bitcoin Cash (BCH) witnessed a price surge of 14% after it completed its halving event on April 3. Consequently, this drove its value to a 3-year high of $700 earlier today. Recall that the token spiked to a high of $697 earlier this week in anticipation of the halving.
Bitcoin Cash (BCH) gains momentum
In a significant turn of events, BCH has reached and passed the previously set level, trading at a new high of $700 for the first time since the massive bull run in November 2021. Even though it has shed some of the gains at the time of writing, the momentum behind the asset remains bullish as it continues to trade in the green zone.
Meanwhile, Bitcoin is also benefiting from the positive sentiment as its price has spiked by 3% over the last 24 hours, trading at $67k. While we still anticipate the BTC halving coming up on April 19, BCH has already led the stage by shooting up North and gathering investors’ optimism.
According to Santiment’s on-chain statistics, Bitcoin’s RSI is currently 79, which is comparable to the level seen during the March rise. An oscillator that measures the speed and size of price movements is the relative strength index (RSI); readings above 70 frequently indicate overbought situations, while readings under 30 indicate oversold conditions.
The overbought RSI doesn’t always portend a decline in Bitcoin Cash, but it does indicate some caution moving forward. It highlights the continued buying trend and the high level of investor interest in BCH. Additionally, it shows that investors are still willing to buy BCH at current prices.
Furthermore, the price is not the only metric showcasing a positive impact, the activities involving the coin, as portrayed in its trading volume have also skyrocketed within the aforementioned time. According to data from CoinMarketCap, the volume of BCH over the last day has spiked by a significant 76.06% to $2,409,064,433 ($2.4 billion). Also, the market cap has gained almost 10% and rallied to $13.7 billion. In hindsight, Bitcoin Cash (BCH) has grown by more than 20% in the last seven days and by 54% in the last month.
Is a surge to $1,000 possible?
Understand that the purpose of a mining event is to reduce the amount of tokens in supply thereby creating scarcity, and strengthening its value proposition as a hedge against inflation. The recent pump in BCH price coincides with miners reducing their selling pressure. Before the halving event, BCH miners were observed accumulating more tokens.
Data from IntoTheBlock paints a clear picture of the selling and holding trend of the miners. According to the data, the amount of BCH tokens held by miners at the end of March had reduced to a 5-year low of about 6.15 million tokens. However, the beginning of April tells a different story as they had cumulatively accumulated 40,000 BCH, raising their balance to 6.19 million.
Per the above data, BCH miners have amassed about $242 million between March 29 and April 3. This could encourage investor optimism and push the price of BCH closer to $1,000 after the April 4 Halving event. At the time of writing, Bitcoin Cash (BCH) is changing hands at $696.13, representing a 9.19% increase in the last 24 hours.
Also Read: https://coinfomania.com/btc-price-surge-by-3230-expected-as-bitcoin-halving-approaches/
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