Corresponding CoinGeckothe token has fallen another 1.4% over the past 24 hours. This does not bode well, being great cryptocurrencies how Bitcoin and Ethereum also got off to a very weak start in 2023.
Bitcoin Cash and Bitcoin Connections
Since Bitcoin Cash a Fork of Bitcoin, BCH will have a strong correlation to BTC most of the time. To get a sense of where BCH is headed, a look at what crypto analysts think about Bitcoin will provide powerful insights into BCH’s future.
CryptoQuant analyst Dan Lim recently Approved his take on the current state of affairs with bitcoin. He noted that the top crypto is dictated by a small number of whales. However, his analysis is contradicted by recent news Bitcoin is actually accumulated by whales.
This could mean that Dan Lim’s analysis suggests retail activity or a mix of retail and whale activity.
What if this is the start of 3 bullish years for #BTC?$BTC #Crypto #Bitcoin pic.twitter.com/OtuOFLUftE
— Rekt Capital (@rektcapital) January 1, 2023
2023: year of reversals?
For institutional investors slowly edging On its way to the market, a rise in Bitcoin will lead to BCH gains as the two are closely correlated. However, some large financial institutions were lost came up with the idea of cryptocurrency as a portfolio diversifier due to the many controversies that plagued the crypto market.
if rect capital Hypothesis essentially stating that 2023 is the accumulation period before the potential cryptobull market 2024 is true, gains for the entire crypto market, especially Bitcoin Cash, are to be expected.
However, the broader financial market has its worst Year since the 2008 crisis, we can set 2023 as a slow but steady period of loss and gradual gain over the next few months.
In the short-term, potential BCH investors and traders might hope that the current support at $96.18 will hold. But with potential downturns caused by more interest rates increaseswe might see BCH bears test $89.17 in the coming weeks.
As another fiscal year begins, BCH investors and traders should keep an eye on macroeconomic developments as they also dominate the crypto market. However, caution is advised as the future for Bitcoin Cash and crypto as a whole is still uncertain.
-Featured image: Binance Academy
Source: Crypto News Deutsch