Bitcoin Cash Trading Predictions For 2021 Onwards
The emergence of Bitcoin Cash was an interesting development for the cryptocurrency sector. Many investors had made excellent profits with Bitcoin by this time and were keen to see if Bitcoin Cash could be a great new investment. Having already seen the success that was being enjoyed by its predecessor, cryptocurrency users everywhere were waiting to see how this new fork of Bitcoin would perform in the market.
Bitcoin had been on the market for eight years when the decision was made to hard fork Bitcoin and create the offshoot, Bitcoin Cash. Bitcoin has a small blockchain size and a relatively slow mechanism for mining Bitcoins. Some Bitcoin supporters felt that they could improve on this model by using larger blockchains and generating currency more quickly.
However, for the long term supporters of Bitcoin, any challenge to its success was unacceptable. This led to the inevitable split between the central Bitcoin model, and what became Bitcoin Cash.
Bitcoin Cash entered the market already carrying some of the weight of the Bitcoin name. This made investors very keen to try to replicate Bitcoin’s early success. This time they felt that they would be able to get in earlier than they had before and gain greater profits.
As time has gone one Bitcoin Cash has become a key cryptocurrency player in its own right. Now that it has established its place within the crypto sector, investors are asking whether there is still money to be made with Bitcoin cash.
Many are wondering if Bitcoin Cash could overtake Bitcoin, making it the best coin to invest in for 2021. There are various factors that affect the performance of this altcoin, and there is a lot to consider before adding Bitcoin Cash to your portfolio.
Bitcoin Cash Splitting from Bitcoin
When Bitcoin burst onto the scene and began the digital currency race as we now know it, it was designed with a rigid set of rules in place. Due to BItcoin’s success in gaining value, since its arrival in 2009, many ideas have been posed to try to improve its design. One of these ideas took the form of Bitcoin Cash and started to gain popularity and support.
The main reason that Bitcoin Cash was created was the integration of the Segregated Witness (SegWit) update onto the Bitcoin blockchain system in 2016. This was designed to make the rules of Bitcoin’s protocol more clear to users and to improve the blockchain size.
However, this was a very controversial time for Bitcoin, and many users decided that they prefered to create larger blockchains by causing a hard fork. This 2017 hard fork split the Bitcoin software into two versions, one of which became Bitcoin Cash, and the other remained as Bitcoin.
Supporters of Bitcoin felt that Bitcoin would hold more value, whereas supporters of Bitcoin Cash felt that the new system would be much better for making transactions. This created two different focuses for the two cryptocurrencies to focus on going forward. Bitcoin Cash has faster transaction speeds and is very focused on being a useful application for transferring currency.
Bitcoin Cash’s Second Spilt
Bitcoin Cash’s hard fork from the original Bitcoin blockchain was not the only one that it would experience. Within Bitcoin Cash there were divides. This mainly centred around a difference of opinion about whether blockchain size should be kept at 32MB or increased to 128MB.
A year later, in 2018, the argument had reached its peak and Bitcoin Cash was made to hard fork, creating Bitcoin SV. Bitcoin SV followed the decision to increase the block size. Whereas Bitcoin Cash continued on as it had intended.
Bitcoin Cash’s Difficulty Problem
Bitcoin Cash has many similar features to Bitcoin, as it was created from the same set of protocols. Because of this, they both have to change how difficult it is to mine their coins to control how quickly they are mined. This is done using a proof-of-work (PoW) algorithm which allows a new block to be mined every ten minutes, on average.
However, Bitcoin Cash has upgraded its system to be faster than Bitcoin’s to try to prevent delays. These changes made Bitcoin Cash briefly unstable but after this was managed the upgrade was altered again to make the difficulty level specific to each block being mined.
This has given Bitcoin Cash a very high level of consistency and stability going forward. This helps Bitcoin Cash maintain liquidity for its users which is an important factor for investors needing to buy and sell at short notice.
Trading BCH to USD
Bitcoin Cash was trading at a price of about $240 when it appeared in 2017, following the Bitcoin hard fork. It has since undergone some very volatile trading patterns and had achieved a price of more than $1,100 by June 2018. However, trading continued to be very volatile for BCH and a downward trend led to it starting 2019 at the low price of $150, which was far below that of Bitcoin.
However, the unpredictable trading cycles have seen minimal sideways trading and some profitable peaks as the crypto coin went on. The Covid-19 market crash of 2020 saw a small early peak for BCH. However, it was not until 2021 that this crypto-coin really began to cash in on the sector-wide boom in decentralized finance (Defi).
January 2021 saw a peak of $600 which increased to $731 the following month. This upward momentum was allowing BCH to become a real value player in the crypto sector. This was most apparent when BCH cleared the $1,500 mark in early May, making a huge step in value. The initial correction appeared to be minimal, however, this was actually a double peak pattern and the following correction was very harsh. Within the space of two weeks, the price had more than halved to hit $550 by the 24th of May 2021.
Although there was some recovery made after the correction, at the end of May and throughout June there has been bearish trading in a downward overall direction. The volatility has left room for swing trading but the bearish trading patterns across the crypto market are very clearly seen in BCH’s movements. There have been some moments of positive trading but the outlook has been unimpressive for BCH over the last month.
Will Bitcoin Cash Rebound from the Last Correction?
The drastic correction seen in May has shocked BCH investors, with some considering leaving BCH out of their portfolio going forward. The strength of the correction brought the stock price down by more than half, which was a blow for recent investors hoping that the bull market would continue through into 2022 unobstructed.
In the last two weeks, there has been some positive movement. However, the rebound is unlikely to be as quick as many investors are hoping. The drop has not been a straight one, and there has been a promising amount of volatility which would boost the likelihood of BCH recovering from this correction in 2021.
Predictions for Bitcoin Cash in 2021 and the Future
The short term predictions for BCH are signalling that the crypto coin will continue to decrease with some volatile surges throughout the remainder of 2021. However, there is still positive support for the coin longer term. Roger Ver, long-time Bitcoin Cash supporter and one of the people responsible for the hard fork to create BCH, is still optimistic about BCH’s future.
‘Soon everyone will realize that the one megabyte block size limit on BTC was a mistake. Once everyone realizes it, everyone will pretend that they knew it the whole time. #BitcoinCash’
- @rogerkver, Twitter account of Roger Ver, CEO of Bitcoin.com
Ver is among the growing supporters of BCH who feel that it will overtake Bitcoin once it recovers from the current correction and bearish trading pattern. If these supporters prove correct in 2022, then investing at this low BCH price point could prove profitable in the next year or two. If Bitcoin Cash was to overtake Bitcoin, the returns would be more dramatic than those seen so far across the altcoin market.
Another positive factor supporting Bitcoin Cash’s long term recovery and success is its increased market adoption. As market adoption continues to boost the coin’s support the price should also start to go back up. Bitcoin Cash was one of the four cryptocurrencies which payment-giant Venmo has added to their platform.
‘Crypto with confidence.
Buy, hold, and sell crypto on the app you already know and love.’
- Statement by Venmo, via vemno.com
This type of positive publicity should have a huge impact on BCH’s ability to return to an upward trajectory in the future. Despite the current low point, Bitcoin Cash is managing to hold values much higher than most of the crypto-sector, standing at $447 at the time fo writing.
This resilience against the bearish market patterns currently at play is another plus point that favours BCH as a cheap investment to make now for profits in the future. The BCH utility and scalability could make it a very prolific long term player in the Defi industry.
Check Out: Will Bitcoin Cash Make Me Rich in 10 Years?
Bitcoin Cash Trading Forecast for 2021
Some experts are predicting a further drop, below the $150 mark, during the rest of 2021. This would bring BCH lower than it has been all year, a bleak outlook for those who invested in BCH during its bullish rise earlier in 2021. It is looking unlikely that there will be large-scale positive movement from BCH until 2022.
The current bear market that has spread across the Defi sector is likely to keep BCH intermittently trading sideways and experiencing downward trading patterns during the second half of 2021.
However, there have been some contradictory price forecasts which have stated that BCH will be at $600 before the end of 2021. This would be a distinct upward leap from its current position and would provide good returns for investors joining the BCH community while the prices are still low.
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Who is behind Bitcoin Cash?
Jihan Wu who co-founded Bitmain was a key person behind the creation of Bitcoin Cash as he pushed for the hard fork to take place to create Bitcoin Cash. It is more decentralized than many altcoins and does not have a CEO managing the coin, and is peer managed by its users to maintain its decentralized status.
What is Bitcoin Cash?
Bitcoin Cash is a decentralized protocol for mining Bitcoin Cash coins (BCH) and transferring currency globally. Bitcoin Cash was an offshoot created after duplicating the Bitcoin blockchain to resolve differences of opinion about how Bitcoin should be run. It is now a decentralized cryptocurrency in its own right and ranks twelfth in terms of market capitalization.
How does Bitcoin Cash compare to Bitcoin?
Bitcoin is the top-ranking cryptocurrency in the world, it is considered to be the original decentralized currency and other coins are alternatives or altcoins. This being said, Bitcoin Cash is 12th in the crypto market in terms of market cap.
This gives it a very good position in the market. It is not worth as much as Bitcoin but is much cheaper to buy because of this. It is linked to Bitcoin because of the similar mechanisms that it uses to function. It is based on the same software and this has allowed it to share in some of Bitcoin’s success.
Should I invest in Bitcoin Cash in 2021?
Now is a good time to invest in Bitcoin Cash if you are looking to see returns later than 2021. The coin is experiencing some of its lowest prices to date and is currently at a relatively cheap price point to enter the Defi market at. Despite this, it is ranked 12th largest by market cap, giving it a positive outlook going forward.
Is Bitcoin Cash still going to go up?
Although Bitcoin Cash is likely to drop further during the course of 2021, it is also predicted to recover substantially from its current price of $447, at the time of writing. Investing at this time may see initial losses. But these should be recovered quickly once the market becomes bullish again, which is signposted to occur in 2022.
To capitalize on the low BCH prices experts recommend buying at this depreciated point in the coin’s trajectory and holding until the market recovers substantially, to gain returns that justify the initial investment.
What will BCH prices rise to in 2021?
BCH prices are unlikely to rise in 2021 with most experts predicting a drop to as low as $140 by the end of 2021. However, these experts have also predicted that if the next bull run in 2022 emulates the trajectory of Bitcoin in the last bull market, then the highs could be as extreme as $20,000 by 2023.