Bitcoin - BTCUSD
The Bitcoin cash price is hovering near its highest point in July 2018 as investors react to the strong performance in the cryptocurrencies industry. The BCH price is trading at $709, slightly below the year-to-date high of $773.
The focus this week has been on Bitcoin, whose price crossed the important $50,000 milestone yesterday. Other currencies have also done well recently. For example, the Bitcoin Cash price has jumped by more than 34% in the past seven days, bringing the total market cap to more than $13 billion. This makes it the 9th biggest digital currency in the world.
Bitcoin cash is often viewed as a proxy for Bitcoin. Many small investors tend to invest in it because of its low nominal price compared to the main BTC. In fact, one BTC can now buy about 70 Bitcoin cash. The currency has also recently gained support from some prominent figures, including Kim Dot Com, the New Zealand tech entrepreneur.
Turning to the daily chart, we see that the BCH price has been on a strong uptrend in the past few months. It has risen by more than 250% since August last year. And this week, the price moved above the important resistance at $653, which was the previous highest point. In fact, the currency managed to move above what seems like a cup and handle pattern.
Therefore, in the longer term, I believe that the Bitcoin Cash price will rise to $1,000. This will mostly happen if the main Bitcoin continues to receive institutional support. However, in the near term, a drop to $600 will lead to a short-term correction.
