BCH lags badly with BTC in the middle of a safe haven
Bitcoin Cash The price drifted sideways on Monday, even as investors began to see cryptocurrencies as safe havens amid the ongoing crisis in the banking sector. The BCH price traded at $136, which was the highest level since February 23rd.
BCH lags behind BTC
A key observation is that the close connection between Bitcoin and Bitcoin Cash has ended. While the BCH price is trading at its highest point since February, the Bitcoin price has risen to $28,000, the highest point since last July. It has nearly doubled from its 2022 low, making it one of the best performing assets this year.
Bitcoin has been in a strong trend as some investors raise their bets that the asset will do well as banks continue to collapse. Silicon Valley Bank, a major US bank, collapsed after announcing an emergency funding round. It was followed by the collapse of Signature Bank, a company that focused on technology and crypto customers.
The largest bank to fail was Credit Suisse second largest Swiss bank in the world. The firm was acquired by UBS in a whopping $3.3 billion deal as the volume of outflows increased to over $10 billion per day. Without the bailout, Swiss regulators would have forced it to close or nationalize it.
It is unclear whether more banks will fail in the short term. However, a study published by researchers from the University of Southern California, Northwestern University and Stanford University warned that 190 banks could fail because of their exposure to long-dated bonds.
If this view is correct, it is likely that more people will move their cash into uncorrelated assets such as gold and Bitcoin. BHC, with its lower liquidity and interest rate, is likely to lag behind Bitcoin in the short term.
Bitcoin Cash Price Prediction
BCH chart by TradingView
The BCH crypto price has been in a slow bullish trend for the past few days. During this period, it has managed to move above the key level of a 50-day moving average. It is also struggling to get above its year-to-date high of $153.92. The MACD has moved above the neutral point.
Therefore, there is a possibility that the Bitcoin Cash price will continue to rise as buyers target the next important resistance point at $153. A move below the 50-day moving average of $125 will invalidate the bullish view.
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