Bitcoin Cash price drifted sideways on Monday even as investors started seeing cryptocurrencies as safe havens amid the ongoing crisis in the banking sector. The BCH price was trading at $136, which was the highest level since February 23rd.
BCH lags BTC
A key observation is that the close correlation between Bitcoin and Bitcoin Cash has ended. While BCH price is trading at the highest point since February, Bitcoin price has soared to $28,000, the highest point since July last year. It has almost doubled from its lowest level in 2022, making it one of the best-performing assets this year.
Bitcoin has been in a strong trend as some investors increase their bets that the asset will do well as banks continue collapsing. Silicon Valley Bank, a storied American bank, collapsed after announcing an emergency funding round. It was followed by the collapse of Signature Bank, a company that focused on technology and crypto customers.
The biggest bank to fail was Credit Suisse, the second-biggest Swiss bank in the world. The firm was acquired by UBS in a $3.3 billion all-stock deal as the amount of outflows increased to over $10 billion per day. Without the rescue, Swiss regulators would have forced to shut it or nationalize it.
It is unclear whether more banks will fail in the near term. However, a study published by researchers from the University of Southern California, Northwestern University, and Stanford University warned that 190 banks could fail because of their exposure to long-dated bonds.
If this view is correct, then, it will be likely that more people will shift their cash to uncorrelated assets like gold and Bitcoin. BHC, with its lower liquidity and interest, will likely lag Bitcoin in the near term.
Bitcoin Cash price prediction
The BCH crypto price has been in a slow bullish trend in the past few days. In this period, it has managed to move above the key level at a 50-day moving average. It is also struggling to move above the year-to-date high of $153.92. The MACD has moved above the neutral point.
Therefore, there is a possibility that the Bitcoin Cash price will continue rising as buyers target the next key resistance point at $153. A move below the 50-day moving average of $125 will invalidate the bullish view.