Bitcoin Cash price is falling for the second straight day as investors start to question the strength of the current rally. BCH is trading at 425, which is slightly below the multi-year high of 481 that was reached yesterday. Other cryptocurrencies like Bitcoin, Ethereum, Stellar, and Cardano are also in the red.
Bitcoin Cash has been a laggard in recent months. The price has jumped by about 200% from its lowest level in 2020. While this is a good performance, it has lagged other popular digital currencies like Stellar and Cardano.
In fact, relatively younger cryptocurrencies like Polkadot and Cardano are bigger than it in terms of market capitalisation. The same is true also when you look at its valuation. The Bitcoin to Bitcoin Cash ratio has surged to 1:90 while the Ethereum to BCH ratio has jumped to 1:2.8.
Bitcoin Cash price is dropping today because of the uncertainty about the future of digital currencies after Bitcoin soared to above $40,000 yesterday. Some previous BTC speculators have started exiting, which has put the price under pressure. In most periods, BTC tends to be correlated with other currencies.
Bitcoin Cash Price Technical Outlook
Turning to the daily chart, we see that the BCH price has rallied substantially in the past few months. It is now attempting to move above the psychological level of $500. It remains above the shorter and longer moving averages.
It is also slightly below last year’s high of $497 while the accumulation and distribution indicator has continued to rally. Therefore, in the near term, the Bitcoin Cash price will continue rising as bulls aim for the next resistance at $500.
BCH technical chart