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The leading cryptocurrency experienced one of its most disruptive days this year, and the situation was even worse for altcoins. Following the recent drop, which left a few investors eager to buy the dip regretting their decision, three-month losses exceeded 50% for some cryptocurrencies. However, one popular altcoin is sending interesting signals despite hitting a three-month low.
Bitcoin Cash (BCH)
BCH price fell to a three-month low and faces the risk of deeper lows. However, there was an interesting increase in mining power (hashrate). According to CoinWarz data, the hash rate rose to 8.54 ExaHash (EH/s). The last time it approached this region was in November 2018, when it reached 7.79 EH/s.
While the price fell to a three-month low, mining difficulty reached an all-time high (ATH). The higher the hashrate, the stronger the network security. The recent miner interest should essentially be a bullish signal for Bitcoin Cash. However, the negative sentiment in the overall market disrupted the balance.
According to The Bitcoin Cash Podcast, the reason for the hashrate increase is a miner named Pheonix. This miner continuously strengthens its operation while holding a significant portion of the newly minted BCH supply.
“A miner acquiring a large amount of coins (or knowing others) might be bullish on BCH trading (150+:1 BCH: BTC, bullish for original miners reallocated to BCH) and might want to obtain extra supply.”
With many devices becoming unprofitable due to the BTC halving, interest in alternative networks was expected to increase (especially with ETH mining having ended). However, such strong demand for BCH is surprising.
BCH Price Prediction
The price, lingering at $357, lost more than 5% in the last 24 hours. Like all other altcoins, BCH’s price performance is focused on Bitcoin’s chart. According to IntoTheBlock data, there is a positive correlation between BTC and BCH, with a ratio of 0.9. The correlation data is measured between +1 and -1, indicating that 0.9 is an extremely high correlation.
The death cross formation that formed after testing $476 on June 10, along with the loss of the $423 support, now brings a greater risk of loss down to $317.79. However, if BTC can reclaim $60,000, a return to $415 might be seen.
