Bitcoin Cash Price Prediction as BCH Loses Correlation to BTC

The Bitcoin Cash price has struggled in the past few months. The BCH price is trading at $565, which is about 65% below the highest level this year. Subsequently, according to CoinGecko, its total market cap has fallen to about $10 billion. This makes it the 21st biggest cryptocurrency in the world. As such, the coin has been overtaken by relatively new coins like Algorand, Avalanche, Terra, and Shiba Inu.

For a long time, Bitcoin Cash and Bitcoin had a close correlation. This happened as investors bought BCH as a proxy for Bitcoin. Besides, with Bitcoin trading at more than $55,000, many investors believed that BCH is a better investment. However, in the past few months, this correlation has faded. While Bitcoin has surged close to near its all-time high, BCH remains about 65% below its all-time high. 

The lack of correlation is similar to what has happened between Ethereum and Ethereum Classic. In the past few months, this correlation has waned. 

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Bitcoin Cash price prediction

The daily chart shows that the BCH price has been in a tight range in the past few months. The price is trading at $565, which is a few points above the 78.6% Fibonacci retracement level. It has also moved slightly above the 25-day and 50-day moving averages. 

At the same time, the coin has formed a symmetrical triangle pattern. With this triangle pattern nearing its convergence level, there is a likelihood that the coin will have a breakout in the coming days. However, since this is a symmetrical triangle, the breakout will be in either direction.

Bitcoin Cash Price