Bitcoin’s value turned positive following the U.S. Court of Appeals for the D.C. Circuit’s decision in SEC vs. Grayscale. This victory requires the SEC to review its stance on the spot-based Bitcoin ETF application.
As a result, BTC and related tokens such as Bitcoin Cash (BCH), Bitcoin SV (BSV), and Stacks (STX) have all gained positively.
Bitcoin Cash increased by 19% on Tuesday, August 30, 2023, reaching $228 and making an overall increase of 40% since its August 18 low of $162.
Bitcoin Cash originated in 2017 from Bitcoin through a blockchain fork, resulting in the creation of a distinct asset and network based on a copy of Bitcoin’s code.
This is why it wasn’t deemed as an unregistered security as it was offered to Bitcoin holders at the time of the fork.
In a resurfaced video from 2018, US Securities and Exchange Commission (SEC) Chairman, Gary Gensler, asserted that Bitcoin Cash – just like Bitcoin, Ether, and Litecoin – are not considered as securities.
This video posted in mid-June had an explosive price rise of Bitcoin Cash followed. From June, 10 when the price was sitting at $100, a 227% increase to $328 happened on July 1, propelled by the the Wall Street-approved EDX exchange listing on 20 June.
This definitely proves that Bitcoin’s regulatory sentiment impacts its forks and related projects and Bitcoin Cash has been paving the way.
In our previous BCH analysis on July 27, we projected another lower low before the price enters a bullish period. This lower low was expected to be at around $221.
“On one hand, the price could potentially drop to around $221 before recovering to somewhere in the region of $360.”
The price initially dropped to $221 on August 3 and then climbed to $246. But it lacked the momentum to sustain the upward movement and faced rejection at the descending trendline.
This seems to be a continuation of corrective wave 4, with the price now aiming for a new high above $331.
Based on this analysis, starting from November 10, 2022, a five-wave upswing began. The drop to $162 on August 18 finished wave 4. If this holds and the price rises again, it could validate our initial bull cycle hypothesis.
Alternatively, the jump to $331 on June 30 ended the ABC correction, wave X from the highest count. This implies the descent from August begins the broader wave Z, potentially taking the price to the $90 support zone.
After Bitcoin’s positive surge, Bitcoin Cash has also rebounded strongly. Despite a slightly deeper expected low in line with our prior analysis, our bullish perspective remains intact.
Nevertheless, a downturn below the $180 initial point of this uptrend might suggest a corrective increase, signaling the beginning of a broader downtrend.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.