Bitcoin Cash (BCH) has reached a three-month high today as its dramatic upswing extends. It began to soar by 20% in Monday trading. The BCH coin rose 18% earlier today before losing some value later in the trade – but as a whole, the coin is up almost 98% since last week. The fresh rally in bitcoin cash price is driven by; the potential launch of the hard fork, the rumors of distribution of new coins to existing holders, and bullish price targets from some analysts.
The massive gains in Bitcoin Cash price over the last week led it to trade around the $1570 level at present – the highest level in the previous three months.
The announcement of the upcoming hard-fork on May 15th contributed significantly to BCH price appreciation; the infrastructural development will increase its block size from 8 MB to 32 MB. The rumor of a spinoff of Bitcoin Cash has also been adding to traders sentiments. BCH holders are expecting to get a new coin or dividend amid the upgrade in its block size.
Analysts, however, are rejecting the possibility of a spinoff and the distribution of new coins to existing holders.
“Those looking to get a new coin or “dividend” out of this fork may be disappointed. Indeed, If this happens, the new coin that is created from the fork will completely replace the old coin”, analysts say.
The potential decline in supply adds to the momentum. Chinese bitcoin mining giant Antpool recently announced to burn a portion of the coins it receives in exchange for solving the complete mathematical puzzles.
“Antpool has burned $12 worth” of Bitcoin Cash a day,” said Kyle Samani, managing partner at the Austin, Texas-based crypto hedge fund Multicoin Capital. “This was purely a PR game so they could say ‘reducing supply’.”
Technical analysts, on the other hand, expect Bitcoin Cash price to pull back from the three-months high; they believe the relative strength index standing above 80.00 signals an overbought condition – indicating a pullback in the short-term.
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