The Bitcoin Cash price has bounced back after it declined to the lowest level since March last week. The BCH is trading at $748, which is 60% above the lowest level last week. The total value of all BCH in circulation has jumped to more than $13.9 billion.
What happened: Bitcoin Cash is often viewed as a proxy for Bitcoin, the biggest digital currency in the world. This is simply because the BCH tends to be less expensive than BTC. Also, the two are closely related because they have a common background since BCH came about after the BTC hard fork.
Therefore, since most Bitcoin Cash is owned by speculators and retail traders, it tends to be relatively volatile. Indeed, many crypto watchers compare its price action to that of gold and silver. As such, when cryptocurrency prices crashed last week, it was among the worst performers.
Similarly, during the ongoing recovery, Bitcoin Cash has outperformed that of BTC. Indeed, while Bitcoin has jumped by 9% in the past 24 hours, BCH has risen by more than 20%. Therefore, to a large extent, the future performance of Bitcoin Cash will depend on how BTC trades. If the gains are sustained, BCH will also continue rising.
Bitcoin Cash price forecast
On the four-hour chart, we see that the BCH price has bounced back in the past few days. The currency’s price is oscillating at the 78.6% Fibonacci retracement level.
It has also jumped above the 50-day moving average (MA). Like all other currencies, it has formed what looks like a V-shape pattern. In price action, this is usually a sign that there are more buyers than sellers.
Therefore, in the near term, the currency may keep rising as bulls target the 61.8% retracement at $913. However, a move below the support at $650 will invalidate this trend.