Bitcoin Cash (BCH) price is very hot these days due to the speculation on its status as a digital asset. In the past few days, BCH crypto has been one of the most traded cryptocurrencies across all exchanges. In this article, we will determine the factors contributing to increased investor interest and future price action.
On Thursday, altcoins are showing some recovery as the Bitcoin price broke above 31,000 after a strong rebound from the weekly lows. Bitcoin Cash price also followed with an 8.56% surge and is now trading at $295. However, it is still down almost 10% from its recent peak.
Why Is BCH Price Pumping?
The recent surge in BCH price can be attributed to the SEC’s lawsuits against Binance and Coinbase. While it may sound weird at first but it is still the truth. In its lawsuits against the top crypto exchanges, the US Securities and Exchange Commission (SEC) called many altcoins securities. However, Bitcoin Cash was not named in any lawsuit.
This led to many crypto analysts believing that just like Bitcoin, Bitcoin Cash might also be considered a commodity by the US regulator. The speculation pumped Bitcoin Cash price to its highest level since April 2022. However, it may not be worth chasing this pump as the price has already increased more than 220% in the last 3 weeks.
Bitcoin Cash Price Prediction July 2023
It is quite evident from the following chart that the recent surge in BCH price has squeezed millions of dollars worth of shorts. Consequently, the price has printed a higher high on the weekly chart. However, while technically, Bitcoin Cash price prediction is looking fairly bullish for the coming months, it still needs support from the Bitcoin price action. A valid bullish target could be a retest of the $400 resistance.
If BTC price fails to gain strength above $31,000, then BCH will also correct. This is because Bitcoin Cash is a fork of Bitcoin, and the former follows the latter’s price action most of the time. The June CPI numbers and this month’s FOMC meeting will keep the prices of both crypto in check in the coming weeks.
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