It comes as no surprise for Bitcoin Cash to perform poorly when the entire crypto market has plunged deeper into a bear market due to various negative factors including the much publicized collapse of the crypto exchange. ftx,
According to coingeco, the token is down a further 1.4% over the past 24 hours. It doesn’t fare as well as the major cryptocurrencies. Bitcoin And Ethereum The beginning of 2023 has also been very weak.
bitcoin cash and bitcoin connection
Since bitcoin cash is a Fork As for bitcoin, BCH will have a strong correlation to BTC most of the time. To get a glimpse of where BCH will be headed, a look at what crypto analysts think about Bitcoin will provide strong insight into what the future holds for BCH.
CryptoQuant analyst Dan Lim recently Free His thoughts on the current state of affairs in bitcoin. He observed that the top cryptos are being guided by a small number of whales. However, his analysis contradicts recent reports that BTC is actually being hoarded by whales.
This could mean that Dan Lim’s analysis indicates retail investor activity or a mix of both retail and whale activity.
— Rekt Capital (@rektcapital) January 1, 2023
2023: The year of reversal?
With institutional investors slowly trickling into the market, the rally in Bitcoin will translate into gains for BCH as the two are closely correlated. However, some major financial institutions have been lost On the idea of cryptocurrency as a portfolio diversifier due to the many controversies affecting the cryptocurrency market.
If Rect Capital The hypothesis, which essentially says that 2023 will be an accumulation period before a potential 2024 crypto bull market, turns out to be true, benefiting the entire crypto market, especially Bitcoin Cash.
However, with the broader financial market worst Since the 2008 crisis, we can set 2023 as a slow but steady phase of losses and gradual gains over the next few months.
In the near term, potential BCH investors and traders can expect the current support at $96.18 to hold. But with a possible downside due to further interest rate hikes increasesWe may see the BCH bears test $89.17 in the coming weeks.
With the start of another fiscal year, BCH investors and traders should watch for macroeconomic developments as this impacts the crypto market as well. Caution should still be exercised as the future for bitcoin cash and crypto is still uncertain.
– Featured Image: Binance Academy