The Bitcoin Cash price surged to a new multi-year high as the cryptocurrency industry rebounded. BCH has risen by about 15% in the past 24 hours, bringing the total gains in the past 7 days to almost 50%. On the other hand, Bitcoin has recovered to $57,100, which is substantially higher than this week’s low of $53,000.
Bitcoin Cash news: Bitcoin Cash is a digital currency that was formed after the Bitcoin hard fork in 2017. The currency is similar to Bitcoin in that it helps people to pay and send money anonymously. However, unlike the main Bitcoin, its overall usage is relatively low, with only a few companies accepting it. Nonetheless, the price has been in a strong upward trend in the past few years, helped by the upward trend of the main Bitcoin. A recent network upgrade also helped.
Today, the BCH price is rising as traders wait for the latest US consumer price index data. The numbers are important because of their impact on interest rates. Furthermore, the monetary policy of the Federal Reserve has helped to propel cryptocurrencies to a record high. This is because the Fed has brought interest rates to a record low and expanded its balance sheet to its highest level on record.
Therefore, if the CPI rises at a faster rate than expected, it will raise the possibility of the Fed intervening earlier than expected. This will, in theory, lead to a rotation from high-risk assets like BCH to value assets.
Bitcoin Cash price prediction
The daily chart shows that the Bitcoin Cash price surged to $1,630, which was the highest level in more than 3 years. As it rose, the currency tested the upper side of the ascending trendline. It has also risen above the short and longer-term moving averages and the Parabolic SAR. It also seems to be forming a bullish flag pattern that is shown in green.
As such, there is a possibility that the currency will keep rising to $2,000. For this to happen, bulls will need to move above the ascending trendline. On the flip side, a drop below the psychological support at $1,000 will mean that there are still sellers in the market.