Нарықтағы құбылмалылық
The cryptocurrency market experienced sharp volatility following the release of a gross domestic product (GDP) report from the U.S. Department of Commerce. The report showed the economy growing by 2.6% in Q3, surpassing analysts’ expectations of 2.4%. This news has boosted investor sentiment, as many companies are showing positive earnings forecasts ahead of the Federal Reserve’s policy meeting next week.
In this post, CryptoChipy will provide insights into Bitcoin Cash (BCH) price predictions from both technical and fundamental perspectives. Keep in mind that when entering a position, factors like time horizon, risk tolerance, and margin availability for leveraged trading should also be considered.
The Fed’s Likely Interest Rate Hike Next Wednesday
Bitcoin Cash separated from the original Bitcoin network on August 1, 2017, quickly becoming one of the most valuable cryptocurrencies globally. It was created by Bitcoin users who believed the Bitcoin protocol needed adjustments to reach a broader audience. Bitcoin Cash proponents argued for lower transaction fees, similar to traditional payment systems like Visa and PayPal.
The goal was to increase Bitcoin’s competitiveness by reducing transaction fees, thus shifting costs to other parts of the network. Bitcoin Cash offers lower fees and higher transaction throughput due to increased block sizes, which makes BCH a more attractive option for consumers looking for cheaper online transactions.
Crypto Market Cap Growth
The overall market capitalization of the cryptocurrency industry increased by 0.4% in the last 24 hours, reaching $1 trillion. Bitcoin was able to break through its range-bound phase, climbing above $20,000 and even reaching over $21,000 before retracing slightly. This positive momentum also helped Bitcoin Cash and other altcoins, though the risk of further declines in the market remains.
According to a market survey, there is an 84.5% chance of a fifth consecutive 75 basis point interest rate hike at the Federal Reserve’s Nov. 1-2 policy meeting, with a 51.4% likelihood of another 50 basis point hike in December. Some analysts, including those from Goldman Sachs, believe the Fed may accelerate rate hikes due to recent economic data. Meanwhile, Nomura analysts anticipate that the latest inflation data could prompt the central bank to implement an even higher rate increase.
While the rate hikes aim to combat inflation, investors are concerned that overly aggressive rate hikes may push the economy into a recession. Peter Schiff, a fund manager, stated that the lack of institutional support and strict monetary policy will likely keep the bear market going for an extended period. Consequently, Bitcoin Cash may struggle to maintain its current price levels, with many experts predicting that the worst is yet to come.
Bitcoin Cash (BCH) техникалық талдауы
Bitcoin Cash has fallen from $138 to $101 since September 9, 2022, with the current price sitting at $118. The cryptocurrency could struggle to hold above the $110 level in the coming days, and a break below this level could signal a further drop, possibly reaching $100.
The chart below shows BCH moving in a range between $135 and $100 in recent weeks. As long as the price remains below $160, it remains in the “SELL-ZONE.”
Key Support & Resistance Levels for Bitcoin Cash (BCH)
On this chart from May 2022, I’ve marked key support and resistance levels that can help traders anticipate price movements. Bitcoin Cash (BCH) remains under pressure, but if it moves above $160, the next resistance target could be at $200. The current support level is at $110, and if this level is broken, it would be a “SELL” signal, opening the way to $100. If the price falls below $100, which is a strong support level, the next target could be around $80.
What Speaks for the Rise in Bitcoin Cash (BCH) Price
The cryptocurrency market has shown positive signals following the release of the GDP report from the U.S. Department of Commerce, which revealed a 2.6% growth in Q3. Despite the ongoing pressure on Bitcoin Cash (BCH), if the price surpasses $160, the next target could be the $200 resistance level. Additionally, BCH’s price is closely correlated with Bitcoin. If Bitcoin pushes above $22,000, we could see BCH rise to higher levels as well.
Indicators for Further Decline in Bitcoin Cash (BCH)
The potential for BCH to rise is limited, especially with analysts like those from Goldman Sachs forecasting that the Fed may accelerate rate hikes based on recent economic data. Investors are concerned that aggressive rate hikes could lead to a more significant sell-off, making it challenging for BCH to maintain its current price levels. If BCH drops below $100, a critical support level, the next target could be around $80.
Bitcoin Cash (BCH) туралы сарапшылардың пікірлері
The cryptocurrency market sentiment has been positive after the GDP report showed a 2.6% growth in the U.S. economy for Q3. This, combined with positive earnings reports from many companies, has boosted investor risk appetite ahead of the Federal Reserve’s upcoming policy meeting. However, the broader market is still at risk of another downturn, and as analysts predict, the Fed’s continued aggressive rate hikes may keep the bear market intact for the foreseeable future.
The overall market cap of the cryptocurrency industry increased by 0.4% in the past 24 hours, positively affecting Bitcoin Cash, though risks remain. With the probability of a fifth consecutive rate hike at the upcoming Fed meeting, Bitcoin Cash could continue to face challenges.
