Despite a lot of bloodbaths lately in the crypto market, a few tokens remained immune to sharp volatility. BCH or Bitcoin Cash is one such notable mention that witnessed just a 1.27% decline when compared to other tokens that had registered 10% to 20% price corrections in the past week. So, if you want to include BCH in your portfolio citing its stability and non-correlation with other crypto assets in the market, in this article, we shall cover everything relevant enough to help you make a decisive call. Read on to get all the insights shaping your investment in crypto, especially in BCH for 2022.
What is Bitcoin Cash BCH?
BCH or Bitcoin Cash shares much of all the traits of Bitcoin; however, it does introduce a whole lot of new features like scaling the block size to include more transactions. The 32MB block size on which BCH hard forked from BTC allows as many as 200 transactions to be processed per second.
Thus paving the way for more utilities like derivative trading, staking, token minting to go live on the ecosystem. Now users of the BCH blockchain can very well tokenize digital artwork on BCH marketplaces, trade in-game assets, and send money in all proportions: big or small in no time at a marginal cost which they couldn’t do on the Bitcoin blockchain at lower costs.
BCH & BTC Price Relationships: Explained
After carefully analyzing the correlation between BTC and BCH, one can infer that it could behave paradoxically sometimes. The correlation coefficient stands at 0.86, which establishes a positive correlation, but the asset has behaved otherwise in a few instances. Had it been -1, it would have established a negative correlation. Or, if it was +1, it would have shown a very positive strong correlation, justifying much of such paradoxical movements. However, at 0.86, based on chart readings do signify somewhat a hybrid behavior nonetheless; but we have had our share of paradoxes while dealing in BCH.
As evident from the above image on November 26, 2021. In the year 2021, BTC saw a -5.29% decline in its prices, whereas, BCH registered a +3.88% growth on the same date. However, when we read their correlation chart on February 8, 2022, BTC registered -38.84% whereas BCH saw -53.3%. Here, we do see BCH has fallen more than BTC. Thus, establishing the fact that they are not a mirror image of each other rather they have their own metrics based on which the prices move.
Bitcoin Cash Price Analysis for 2022
BCH didn’t have a very promising 2021 as the prices have fallen by more than 60% in the last few months. In between May to July, the coin reached $1400 only to drop down to as low as the $300 mark.
The fall below the Keltner channel as indicative from the chart given below signifies a downtrend that could be imminent in the coming days.
However, if we see the 200 days MA, it is well above the 100 Days MA which signifies that a possible uptrend in the future cannot be ruled out either.
To sustain the prices, BCH must break the resistance levels as shown in the below chart. If BCH can go past resistance 1 and 2, we could well see a breakout and BCH could go as high as $822; however, if bears could dominate in the coming months, BCH may go as low as $195 by 2022.
Is BCH a worthwhile investment in 2022?
BCH could be a worthwhile investment for 2022 since it can easily accommodate all the use-cases of DeFi. On top of this, BCH has also provided easy mining features with news floating all over social media and the Internet that in June 2021 someone was able to mine BCH using Raspberry Pi4 which is simply unprecedented. Considering that ASICS mining is too cost-intensive, we could very well see the sentiments moving to BCH for mining profitability.
Where to Buy BCH?
Here are a few key exchanges where you can buy BCH or Bitcoin Cash.
For safe-keeping, it is advisable to keep your crypto secure in a hardware wallet. There are multiple hardware wallets that you can pick; however, based on our experience, we personally recommended Ledger Nano due to security and multiple tokens supported.
