Bitcoin Cash (BCH) has experienced a notable price surge over the past week, gaining more than 20%. Today, Bitcoin Cash (BCH) price surged to a three-year high, gaining an additional 14% and surpassing the $700 mark for the first time since 2021.
Bitcoin Cash Halving Pushes BCH Price Higher
A day ago, the Bitcoin Cash network successfully conducted its second halving, which initially triggered a drop in BCH price. However, it quickly resumed its northward rally and is currently trading above $700.
According to on-chain data provided by Santiment, Bitcoin’s RSI is currently at 79, similar to what was observed during the March surge. The RSI is an oscillator that measures the speed and magnitude of price changes, with readings over 70 typically indicating overbought conditions and below 30 indicating oversold conditions.
While an overbought RSI suggests caution ahead, it does not necessarily portend a downturn for Bitcoin Cash. Instead, it highlights strong investor interest in BCH and continued buying momentum. It also means that investors are eager to invest in BCH and prices continue to rise.
Bitcoin Cash’s 30-day market value to realized value (MVRV) ratio currently stands at 13%, which some analysts may interpret as bearish sentiment. However, it is worth noting that BCH has historically seen price gains even with comparable MVRV ratios. This suggests the potential for continued investment and price gains, thus reaffirming the overall bullish sentiment towards the cryptocurrency.
Will BCH’s price gains last? The recent price gains for Bitcoin Cash are also due to a reduction in selling pressure from miners. In fact, Bitcoin Cash miners have once again been seen hoarding around this halving event.
According to IntoTheBlock, miners’ holdings had decreased to a five-year low of 6.15 million BCH as of March 28. But recent data shows that their balances increased by 40,000 BCH to 6.19 million BCH as of the close of April 2.
Bitcoin Cash miners accumulated $242 million between March 29 and April 3, which could boost investor optimism and potentially push BCH prices to $1,000 after the April 4 halving event.
Aldo said BCH order books on cryptocurrency exchanges confirm bullish price predictions for the altcoin.If BCH bulls sustain this breakout above $701, they can resume gains further towards $1,000.
