The leading cryptocurrency suffered a significant disruption recently, causing altcoins to experience even worse conditions. After the recent price drop, some investors who bought the dip faced losses, with three-month declines exceeding 50% for certain cryptocurrencies. Nevertheless, one prominent altcoin, Bitcoin Cash (BCH), is displaying intriguing signals despite reaching a three-month low.
What’s Driving the Hashrate Increase?
Bitcoin Cash’s price fell to a three-month low and is at risk of further declines. Conversely, there was a notable surge in mining power, as reported by CoinWarz, which indicated that the hashrate rose to 8.54 ExaHash (EH/s). The last comparable level was in November 2018, when it reached 7.79 EH/s. Despite the price drop, the mining difficulty has hit an all-time high, suggesting stronger network security. Although this increased miner interest should signal a bullish outlook for Bitcoin Cash, prevailing negative market sentiment has disrupted this balance.
Why Are Miners Focusing on BCH?
Analysis from The Bitcoin Cash Podcast attributes the increase in hashrate to a miner named Pheonix, who continues to strengthen operations while holding a significant portion of the newly minted BCH. This substantial acquisition of coins indicates a bullish stance on BCH trading. The disappearance of profitability for many devices due to the BTC halving has led to anticipated interest in alternative networks, but the intense demand for BCH remains surprising.
Key Insights
Strategic Takeaways:
- Bitcoin Cash’s hashrate has increased unexpectedly amid a significant price drop.
- Recent miner interest suggests a potentially bullish signal for BCH.
- BCH’s price performance shows a strong correlation with Bitcoin’s chart.
The BCH price is currently at $357, having lost more than 5% in the last 24 hours. Similar to other altcoins, BCH’s price trends closely follow Bitcoin’s chart, with a positive correlation of 0.9 according to IntoTheBlock data. The death cross formation observed post-testing $476 on June 10 and the loss of $423 support increases the risk of further decline to $317.79. However, if Bitcoin can reclaim $60,000, BCH could see a rebound to $415.