Bitcoin Cash Halving Today – How Will the BCH Price React?
How Will the BCH Price React to Its Halving? | Credit: Getty Images
Key Takeaways
- The second Bitcoin Cash halving will occur on April 3, 2024.
- The BCH price has fallen since reaching a yearly high on April 1.
- Will the BCH price correct after the halving, or can it regain its footing?
Bitcoin Cash’s second halving will be on April 3 at 15:00 UTC. It will occur in block height 840,000. Block rewards are currently 6.25 and they will be cut to 3.125 after the event.
The first Bitcoin Cash halving was on April 10, 2020. In 2024, the BCH price has increased significantly in anticipation of the event. Will the uptrend continue after halving or will the BCH price correct instead?
What Happened During the Previous Halving?
The first Bitcoin Cash halving took place on April 10, 2020 (white). At the time, BCH was trading at $250. After the halving, the BCH price entered a 250-day consolidation period where it moved in a 50% range.
This ended in December 2020 when the BCH price began a parabolic upward trend that led to a high of $1,644 in May 2021.
The BCH price movement preceding the current halving is nothing like the one in 2020. Then, the price was correcting for nearly 300 days before the halving, while it has been on an upward trend this time around.
Additionally, the weekly RSI was at 50 in 2020 and is deep into overbought territory at 75 at this point in time. Therefore, both the movement and indicator readings are dissimilar in the 2020 and current halvings.
BCH Price Prediction: What Happens This Time After the Halving?
The daily time frame chart shows that the BCH price is in wave three of a five-wave upward movement (white) that started in June 2023. The sub-wave count is in black, showing an extended wave three, which ended with a high of $705 on April 1.
The sub-wave count shows a completed five-wave formation, which ended at the 1.61 external Fibonacci retracement of sub-wave four. So, it is possible that the long-term wave three has ended.
The daily RSI generated bearish divergence during the high, a sign often associated with tops. If the upward movement has in fact ended, BCH can correct toward the closest support at $460 before resuming its long-term upward trend.
This bearish prediction will be rendered invalid if BCH climbs above $705. Then, the price can immediately move to the next resistance at $834.
BCH Faces Potential Correction Ahead
The BCH movement preceding the 2020 and 2024 halvings are, as we have already said, nothing alike. The wave count and indicator readings predict that the BCH price will first correct after the halving before eventually resuming its upward trend.
Bitcoin Cash Price Prediction 2024: Can BCH Hit Its Own All-Time High?
