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Bitcoin Cash breaks $300 after Kim Dotcom’s endorsement

The Bitcoin hard fork could be set for $3,000 next year if Kim’s prediction turns out to be correct

The sixth-largest cryptocurrency by market cap experienced a dramatic price increase as it got endorsed by a famous entrepreneur and political influencer, Kim Dotcom. He stated that Bitcoin Cash is a great coin for processing payments, as well as that he expects its price to reach $3,000 in 2021.

Following this, Bitcoin Cash has now received a boost to its overall outlook, which is now extremely bullish. When taking a look at its week-over-week performance, BCH has posted a gain of 16.49%. This outperforms BTC’s week-over-week gains of 11.62%, as well as ETH’s gains of 0.37%. XRP ended up being in the red over the same period, posting losses of 1.97%.

At the time of writing, BCH is trading for $362, marking a 14.15% month-over-month increase.

BCH/USD

Taking a look at the weekly chart, Bitcoin Cash has formed a triangle formation which it is attempting to pass at the moment. The sixth-largest cryptocurrency by market cap pushed past $300 as a result of the aforementioned endorsement, reaching as high as $380. However, many BCH analysts are calling for a $500 price level before a slight consolidation.

If BCH manages to break the triangle formation, its most likely mid-term target will be the $720 level. However, if it decides to stay within the triangle formation, BCH is most likely to retrace back towards $300 and look for a strong support level.

BCH/USD daily price chart. Source: TradingView

The technical overview shows that Bitcoin Cash’s RSI indicator on the daily time-frame is quickly ascending towards the overbought territory. This is a good indicator of the price reaching its short-term peak, and that consolidation or a peak might be in sight.

BCH’s volume is on the increase, which is a good sign of the most recent uptick being a healthy move. However, the volume will have to stay high in order for BCH to push past the triangle formation.

BCH/USD 1-hour chart. Source: TradingView

Taking a look at the 1-hour time-frame, we can see BCH’s volume slowly fading after the initial push. The consolidation after hitting the $380 level seems like a move that will decide the short-term future.

If Bitcoin Cash finds support in the 21-period moving average and receives a spike in volume, it might continue up. However, if that doesn’t happen, we can expect it to look for support somewhere closer to $300.

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