Bitcoin Cash has enjoyed a fruitful beginning to the year with a stunning 160% rise from a low of $170 more than two years ago.
At the time of writing it was testing the $450 level of resistance ahead of a potential move towards $517 as Bitcoin begins to stabilise around $10,000.
From a technical perspective, the 50 exponential moving average has shown serious strength with a cross above the 200 EMA and 200 MA.
With the long-awaited golden cross – the first since May 2019 – coming into fruition, Bitcoin Cash now looks set to embark on an unbelievable bull run with upside targets crossing the $1,000 mark.
However, it needs to continue trading above $420 in order to maintain a level of reliable support, which will likely be tested if Bitcoin fails to breach the $10,000 level with conviction.
Much of Bitcoin Cash’s upcoming trajectory will also depend on the direction of Bitcoin leading up to May’s halving event, which has historically been bullish for cryptocurrencies.
The two previous halvings in 2012 and 2016 preceded a series of bull markets that saw Bitcoin eventually eclipse its previous all-time high.
The theory is that as rewards for miners will be slashed, the supply will dry up, leading to a surge in demand as the price begins to rise.
If Bitcoin begins to embark on its own halving-inspired bull market, altcoins like Ethereum, Litecoin and Bitcoin Cash will all also see a significant hike in price.