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Bitcoin Cash Price Forecast: BCH Could Hit $1,000 milestone in 2024

By:
Ibrahim Ajibade
Updated: Apr 15, 2024, 07:59 GMT+00:00

Key Points:

  • Bitcoin Cash (BCH) price rebounded above $560 on April 15, up 25% from the 20-day bottom of $443 recorded 3-days ago.
  • Rather than exit after the Bitcoin Cash Halving on April 4, long-term investors have increased their holdings by 150,000 BCH (~$82 million).
  • BCH short traders now face $5m losses as prices head toward the $600 mark.
Bitcoin Cash (BCH) Price

In this article:

Price Insights:

Bitcoin Cash (BCH) price has advanced above the $560 territory on Monday, April 15, marking a blistering 25% rebound after tumbling to a 20-day low of $443 recorded at the weekend.

On-chain data shows that BCH long-term holders remain reluctant to sell, despite the April 4 halving event and the flaring geo-political tensions.

Is Bitcoin Cash price on course for a parabolic breakout towards $1,000?

On April 3, 2024 the Bitcoin Cash network deployed its second ever Halving event, which raised skittish speculations of a post-halving sell-off, while the flaring Middle-East conflict further intensified the market fears on Friday April 10.

Unsurprisingly, on April 11, Bitcoin Cash price tumbled 38.73%, falling below $450 for the first time in 20-days after being subject to intense speculations and market volatility.

Bitcoin Cash (BCH) Price Action, April 2024 | Source: TradingView
Bitcoin Cash (BCH) Price Action, April 2024 | Source: TradingView

But despite the negative sentiment triggered by crucial events mentioned above, BCH price has managed to flip the broader market trends and stage an early 25% recovery.

Long-term Investors have Acquired 150,000 BCH since Halving

BCH has reclaimed the $554 territory at the time of writing April 15. But, looking beyond the price action, the resilience shown by Bitcoin Cash long-term investors has been pivotal to the ongoing rebound.

IntoTheBlock’s Balance by Time-Held chart below, tracks BCH coins that have remained unmoved for 1-year or more. It essentially, tracks the trading activity of long-term investors.

Bitcoin Cash Price vs Long-term Holders (+1yr) balances | Source: IntoTheBlock
Bitcoin Cash Price vs Long-term Holders (+1yr) balances | Source: IntoTheBlock

Hours before the April 3 Halving event, some long-term holders rapidly cut their balances to 11.54 million BCH, likely to front-run imminent downside that has
perennially greeted Proof-of-Work (PoW) coins after an halving event.

But rather than flood the markets after the halving, the latest data shows the number of coins held by long-term investors has since grown by 150,000 BCH to hit the 11.69 million BCH at the time of publication April 15.

Effective, this means despite fears of a post-halving sell-off, and escalating geo-political tensions, BCH long-term holders have show remarkable resilience, accumulating 150,000 BCH worth approximately $82 million between  April 3 and April 15.

Typically, such a dramatic surge in the number of long-held coins during periods of intense volatility could trigger upward price action, even against the run of play in the broader market trends.

  • Positive Sentiment: Firstly, it suggests that majority of Bitcoin Cash existing holders remain optimistic of the asset’s near-term price prospects.
  • Short-term supply cuts: More importantly, coins in custody of long-term holders are effectively taken out of the short-term market supply.

Hence, the $82 million in BCH spot market supply, has evidently played a pivotal role in downsizing sell-side pressure and accelerating the 25% price recovery at the weekend.

And if more strategic investors take a cue from the long-term holder’s bullish disposition, Bitcoin Cash price could witness a parabolic breakout towards $1,000 milestone in 2024.

BCH Price Forecast: Smooth Sail to $600?

In the near-term, Bitcoin Cash price recovery phase will likely to advance towards the $600 area, especially if coins held by long-term holder surges further above 11.7 million BCH in April 2024.

Coinglass’ Liquidation Map data, which shows the value of leveraged futures contracts active at key price levels also further affirms this bullish Bitcoin Cash price outlook.

As seen below, the number of BCH LONG leverage positions has now exceeded the SHORTs by a noticeable margin, which signals the derivatives traders have  overwhelming expectations of more price upside.

Bitcoin Cash (BCH) Price Forecast | Source: Coinglass
Bitcoin Cash (BCH) Price Forecast | Source: Coinglass

BCH short-traders are now at risk of losing $5 million in potential liquidations if price surge another 10% to reclaim $600. In comparison, the bulls could lose over $20.8 million if price fall below $470 support level.

But, given that the bulls have significantly more skin in the game, BCH price advancing towards $600 is the more likely outcome.

If that scenario plays out as expected, the Bitcoin (BTC) Halving and imminent US Fed rate cuts are some other bullish catalysts that could come in play for BCH to approach the $1,000 mark the year unfolds.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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