After an extremely strong rally of over 100% from the March lows, Bitcoin Cash and the rest of the crypto market have started to reverse over the past few days. BCH in and of itself has shed approximately 15% from its highs, crushed as sellers take over the market.
Most analysts assert that this drop is temporary, but one eerily accurate trader is calling for a brutal more than 50% drop for Bitcoin Cash, citing an eerie fractal.
Analyst charts that BCH will drop below $100
In the middle of February, when the cryptocurrency market was at a multi-month high, a majority of investors were calling for new highs.
So when a prominent crypto trader predicted that XRP, then at $0.27, was on the verge of falling by 50% towards a “potential long-term bottom” between $0.13 and $0.15, many shunned the sentiment.
The chart shows that BCH’s chart from mid-2018 to today is looking eerily similar to the long-term chart of the British pound against the U.S. dollar. Should Bitcoin Cash’s price action play out as it has with the pound, the analyst suggests, the altcoin could trade all the way under $100 by the end of the year.
This comes shortly after the same trader remarked that Ethereum’s chart looks like a textbook “corrective pattern” by Elliot Wave standards. He also indicated that XRP could drop towards $0.05 over time, pointing to yet another fractal analysis signaling an impending crash for the top altcoin.
Bitcoin Cash hashrate grew by more than +130% within two hours
Binance Research has reported a chart on Twitter about Bitcoin Cash hashrate. They said:
Bitcoin’s halving has also impacted Bitcoin Cash’s mining activities. Some miners rotated to mine BCH, leading to faster block times on the Bitcoin Cash blockchain due to an increase of its hashrate by more than 130%.
BCH’s hashrate is now 4.24 EH/s | Source: coinwarz.com
All eyes on BTC
While the trader’s abovementioned analyst has credence due to his track record, BCH’s trajectory is largely dependent on Bitcoin.
And fortunately for the holders of the leading cryptocurrency, Bitcoin’s trajectory is purportedly both fundamentally and technically bullish.
When Bitcoin’s weekly candle closed on Sunday night, investors were running scared.
After seven weeks of consecutive gains, the cryptocurrency had printed a textbook “Doji” candle, marked by a skinny body and long wicks above and below the candle. Doji candles, according to some traders, are a sign of a trend reversal.
Yet, according to the Galaxy that shared the chart below, it may be a precursor for more gains.
He noted that the last time Bitcoin saw seven weeks of consecutive gains, then a Doji was at the start of 2019’s bull rally. What followed the last occurrence of this trend was a 160% increase within the span of three or so months.
This means that should history repeat itself, the cryptocurrency could hit $20,000 as 2020 comes to a close.
Chart from @GalaxyBTC that depicts the similarities between Bitcoin’s recent rally and that seen at the start of the 2019 bull run.
There’s also the simple fact that the Bitcoin halving just passed, which will mean that there is less supply of the coin being sold on the market every day. Assuming consistent demand from prior to the halving and now, prices should increase towards a new supply-demand equilibrium over time.
Should BTC rally, so too should BCH, though it isn’t clear if one will outperform the other.
Read more:
- Wall Street Legend Paul Tudor Jones: I Have Invested Somewhere Between 1% And 2% Of Assets In Bitcoin
- Crypto Analyst Willy Woo: Miners Will No Longer Be The Largest Sellers Of Bitcoin After The Halving