The Impact of EDX Markets Launch on BCH
Bitcoin Cash split from the original Bitcoin network on August 1, 2017, quickly establishing itself as one of the leading cryptocurrencies globally. Bitcoin Cash was created by Bitcoin users who believed that technical changes were needed to scale Bitcoin for a global audience.
Supporters of Bitcoin Cash argued that Bitcoin needed modifications to compete with traditional payment systems like Visa and PayPal. They also advocated for reducing transaction fees, with the intention of shifting these costs to other areas of the network.
To achieve these goals, Bitcoin Cash modified Bitcoin’s code and released a new version that was no longer compatible with Bitcoin. Bitcoin Cash offers lower fees than Bitcoin and supports higher transaction throughput due to an increased block size.
Many analysts believe that by focusing on cheaper transactions, Bitcoin Cash will attract more users for online transactions, thereby increasing its value.
Is Bitcoin Cash Making Waves?
The price of Bitcoin Cash (BCH) has soared since June 21, 2023, reaching above $330, a price point last seen in April 2022. Many crypto analysts attribute this sharp rise to the launch of the new crypto exchange EDX Markets, which is backed by major financial players like Fidelity Investments, Charles Schwab, and other Wall Street leaders.
EDX Markets launched on June 21, initially supporting only Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and Bitcoin Cash (BCH).
Bitcoin Cash has seen the most benefit from the launch of EDX Markets, and according to the crypto market intelligence platform Santiment, BCH has experienced a 3-year high in social media discussions, with trading volumes surpassing the highs of 2023.
On the final day of June, South Korean crypto exchange Upbit reported over $500 million in trading volume for the Bitcoin Cash (BCH)/Korean Won (KRW) pair in a single day. This was three times higher than Bitcoin (BTC) trades.
Increased Interest and Trust in Bitcoin Cash
The high trading volume reflects renewed interest and confidence in Bitcoin Cash, but investors should keep in mind that cryptocurrency markets are highly volatile. While positive developments, such as EDX listing, can drive prices up, they also bring inherent risks.
Many analysts predict that institutional investors may continue purchasing Bitcoin Cash (BCH) in the upcoming weeks, potentially pushing prices even higher. As a result, Bitcoin Cash (BCH) could see further gains, especially if Bitcoin and other major cryptocurrencies continue to show upward momentum.
On the other hand, some indicators, such as the Relative Strength Index, suggest that BCH may be overbought. If the current bullish momentum slows down and BCH faces a strong rejection, it could lose much of its recent gains.
The coming weeks will be crucial in determining if this rally has the strength to push Bitcoin Cash to new heights in 2023 or if it will falter.
Bitcoin Cash (BCH) Technical Breakdown
Bitcoin Cash (BCH) has risen by more than 20% since June 21, 2023, from $109.95 to a high of $333. Currently, Bitcoin Cash stands at $247, and although there was a recent correction, the bulls are still in control.
Many analysts believe that institutional investors could continue to buy Bitcoin Cash (BCH) in the coming weeks. As long as BCH remains above $200, the cryptocurrency is still considered to be in the BUY-ZONE.
Key Support & Resistance Levels for BCH
On the chart since March 2023, I have highlighted key support and resistance levels that can help traders anticipate potential price movements.
Bitcoin Cash has greatly benefited from the launch of EDX Markets, and if its price climbs back above $280, the next resistance target could be around $300.
The key support level for BCH is at $225. If the price breaks below this level, it would signal a “SELL” trend, and the next target could be around $200. If BCH falls below $200, which is considered strong support, the next target could be $150.
What Supports the BCH Price Surge?
Over the past several weeks, the trading volume of BCH has significantly increased. If Bitcoin Cash rises above $280, the next resistance could be at $300.
Traders are buying BCH following the launch of EDX Markets, and analysts suggest that more institutional investors could purchase Bitcoin Cash (BCH) in the coming weeks, potentially driving further growth.
From a technical standpoint, Bitcoin Cash (BCH) still has room for upside potential, particularly if Bitcoin’s price continues to rise.
Factors That Could Lead to BCH’s Decline
Many crypto analysts point to the EDX Markets launch as one of the primary reasons for BCH’s significant jump. However, positive developments like the EDX listing also carry risks.
Various indicators, such as the Relative Strength Index, show that BCH might be overbought. If its price drops below $200, the next support target could be $150.
Additionally, BCH’s price is closely correlated with Bitcoin’s price. If Bitcoin drops below $28,000, it could negatively impact BCH’s price.
Експертни прозрения и мнения
Bitcoin Cash (BCH) has soared since June 21, 2023, with analysts suggesting that the launch of EDX Markets has played a key role in the surge. The high trading volume reflects increased interest and confidence in BCH, with expectations that institutional investors may continue purchasing Bitcoin Cash in the coming weeks.
The broader cryptocurrency market sentiment also plays a vital role in BCH’s price trajectory. Fortunately, recent data from the U.S. showed that inflation cooled more than expected in June, boosting investor confidence and raising hopes that the Federal Reserve may halt interest rate hikes.
The Federal Reserve meeting is scheduled for July 26, and according to Antoni Trenchev, co-founder and managing partner of crypto lender Nexo, if the Fed indicates that it has finished raising interest rates, this could fuel another bullish trend.
