Bitcoin Cash Price: Chart Pattern Indicates Return

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Bitcoin Cash price retreated slightly on Friday even as concerns about the coin grew. BCH hit a high of $102, which was the highest level since Dec. 21. It jumped more than 4% from its low this year.

Decline in BCH hash rate

Bitcoin Cash is a first-generation cryptocurrency that emerged as a hard fork of Bitcoin, the largest crypto in the world. As such, the architecture of Bitcoin Cashs is similar to that of Bitcoin. They are also used for the same purposes.

However, over the years Bitcoin Cash has been an underdog in the industry. This performance in turn led to low usage statistics. It is estimated that there are over 4 million BCH holders worldwide.

Its trading volume has also been under pressure. This explains why Coinbase Wallet decided to remove the coin from its platform in October.

Like other cryptocurrencies, the price of Bitcoin Cash has seen a strong downtrend over the past few months. This drop came as the Federal Reserve tightened policy and crypto companies like FTX, BlockFi, and Celsius crashed.

Find out how to buy Bitcoin Cash.

As a result, confidence in the industry has disappeared over the past few months. This explains why the fear and greed index plunged to the fear level of 27. Additionally, exchange outflows also increased, with Binance losing nearly $10 billion in the past 30 days,

The on-chain data also suggests that Bitcoin Cash is in trouble. The data shows that the BCH hashrate sits at just 1.44 PE/s, which is below its all-time high of 2 PE/s. Hashrate is an important number that measures the health of a blockchain network. In contrast, Bitcoin and Litecoin have seen their hash rates hit record highs.

Bitcoin Cash Price Prediction

The daily chart shows that BCH price has seen a slow comeback over the past few weeks. This rally saw the coin move above the 25- and 50-day moving averages. It has also formed what looks like an inverted head and shoulders (H&S) pattern. In price action analysis, this pattern is usually one of the most accurate bullish patterns.

Therefore, it is likely that the Bitcoin Cash price will have a bullish breakout. If that happens, it will likely hit a high of $110. A drop below the support at $100 will invalidate the bullish view.

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