The importance of Bitcoin Cash (BCH) in Volatility and Market Analysis
In the cryptocurrency world, market volatility is a common phenomenon that can affect the value of various digital assets. Among the numerous cryptocurrencies available, some were more volatile than others. Two of these cryptocurrencies that attracted significant attention are Bitcoin (BTC) and Ethereum (ETH). However, a cryptocurrency managed to forge his own niche in this kingdom: Bitcoin Cash (BCH).
In this article, we will deepen the importance of BCH in market volatility and analyze its historical performance, technical indicators and future perspectives.
What is Bitcoin Cash?
Bitcoin Cash is a digital currency equal to it as an alternative to Bitcoin. Although Bitcoin has been designed to be a decentralized, open and safe source, Bitcoin Cash has been introduced to address some of the limitations of the original Bitcoin protocol. BCH aims to provide more flexibility in terms of its use, scalability and usability cases.
Market volatility
Bitcoin market volatility has been a discussion topic between investors and analysts equally. The cryptocurrency market is known for its high degree of uncertainty, and prices flow quickly in response to various factors, such as global economic conditions, regulatory changes, and the feeling of investors.
In recent years, Bitcoin market volatility has increased significantly, with a few days undergoing price changes of more than 10% or more. This level of volatility can be attributed to several factors, including:
- Global Economic Uncertainty : Economic Recessions, Recessions, and Commercial Wars have led to a decrease in investor confidence, which causes prices to fall.
2.
- Market Feeling
: The feeling of investors can be influenced by social networks, on -line forums and other forms of market communication, contributing to price fluctuations.
Bitcoin Cash was able to navigate this market volatility level relatively well due to its:
- Increased adoption : BCH use and adoption cases have increased significantly, providing more demand for cryptocurrency.
- Enhanced Scalability : The largest BCH block size and faster transaction processing times make it more suitable for high traffic nets.
Analysis
To analyze the Volatility of the BCH market and the possible future perspectives, we will examine several technical indicators:
- Price rate for profits (p/e) : This relationship helps us determine whether a cryptocurrency is overvalued or undervalued compared to your profits.
- Mobile Average
: These technical indicators help identify trends and predict price movements.
- Relative Strength Index (RSI) : This indicator measures the speed of price change compared to past prices, which indicate excessive conditions of use or excess opening.
Historical performance of BCH
Here is a brief description of BCH’s historical performance:
* 2017 : The year that started for BCH was 2017. After the initial Bitcoin exaggeration, the price of BCH increased exponentially.
* 2020 : After Cupid Covid-19, the price of BCH experienced significant reductions due to the reduction of investors’ interest.
Technical Indicators
Here are some technical indicators for BCH:
- Payment price fee (w/p) : This relationship compares the current price of a cryptocurrency with your payment processing fees.
- MOCD Average Convergence Divergence (MACD) : This indicator helps identify trends and predict price movements.
Future Perspectives
As we look at the future, it is essential to consider the potential risks and rewards associated with BCH’s investment:
1.