Bitcoin Cash Paints 50% Rally Setups As Rival Bitcoin Nears $100,000

Bitcoin Cash (BCH) has emerged as a top performer following Donald Trump’s reelection as president of the United States. As of Nov. 21, BCH is trading at $537, up 106% year-to-date, including a 50%- plus boom after the US election results on Nov. 6.

Meanwhile, Bitcoin (BTC) has risen over 120% in 2024, reaching a new all-time high of over $98,500. BCH followed suit, jumping 22.5% on Nov. 21. Bitcoin Cash jumped circa 22.50% on the same day.

Bitcoin now eyes the $100,000 milestone by the end of November. A strong positive correlation between BTC and BCH is evident, with a daily correlation coefficient of 0.93 as of Nov. 21 (TradingView data).

Therefore, Bitcoin’s rally, spurred by Trump’s pro-crypto policies, could continue to boost BCH prices in tandem.

Bitcoin Cash Price Prediction: A 50% BCH Rally is Very Possible By December

Bitcoin Cash’s rally during the crypto market’s “Trump Trade” euphoria has opened strong possibilities of a 50% price boom by December.

Bitcoin Cash Breaks Post-Halving Consolidation Zone That Preceded 640% Rally in 2021

Bitcoin Cash is showing bullish momentum as it breaks out of a consolidation zone (red area in the chart below), historically a precursor to major rallies, following the Bitcoin Halving in April 2024.

Bitcoin Cash has historically rallied after Bitcoin’s halvings due to its positive price correlation with BTC and broader market trends. After the May 2020 halving, BCH surged by almost 640%, rising from ~$230 to ~$1,620 within a year.

BCH is displaying similar patterns. Its breakout from a long-term red consolidation area aligns with historical behavior observed before its 2020 rally, suggesting bullish momentum ahead.

Key technical indicators highlight the 0.236 Fibonacci retracement level (~$755) as a potential resistance target. In other words, BCH price can rise by over 50% by December 2024 if the post-halving fractal plays out as intended.

BCH Falling Wedge Breakout Underway

Bitcoin Cash has broken out of a falling wedge pattern, a bullish technical setup, signaling the potential for a circa 50% price rally by December.

The falling wedge pattern, evident on BCH’s daily chart, forms when price action trends downward within two converging trendlines, signaling decreasing bearish momentum. A breakout above the wedge’s upper trendline is typically viewed as a bullish reversal signal.

The breakout target is calculated by measuring the height of the wedge’s widest section and projecting it upward from the breakout point. For BCH, this measurement suggests a price target of $709, roughly a 50% increase from current levels near $483.

Bitcoin Cash’s relative strength indicator (RSI) on both weekly and daily timeframe charts is below the overbought threshold of 70, unlike Bitcoin. In other words, BCH has technically more room to grow compared to its top rival.