The bitcoin cash (BCH) price surged nearly 10% in the past 24 hours as traders shed light on potential network changes ahead of the Bitcoin Cash protocol’s May hard fork.
BCH broke above resistance levels of $108 to as much as $125 on Friday, price charts data shows. Buying interest could fuel a movement to at least $150, where the next resistance level lies.
A hard fork refers to an upgrade in any blockchain network. Bitcoin Cash’s May hard fork is set to bring added security and privacy to the fledgling network, with plans for “CashTokens” – which would enable decentralized applications directly on Bitcoin Cash, as per developers.
Other proposed improvements already locked in include smaller transaction sizes – which help speed up transactional times – and smart contracts functionality that could allow Bitcoin Cash-based applications built that offer recurring payments, derivatives trading, and crowdfunding opportunities, among other uses, to Bitcoin Cash users.
Mechanism Capital founder Andrew Kang noted on Twitter the fundamental improvements coupled with a general bottoming of BCH's price set the runway for a price surge in the coming weeks. “Charts look insanely bottomed and ready for impulse,” Kang tweeted.
- Charts look insanely bottomed and ready for impulse
- Most BCH whales (Ver, Jihan) either capitulated or inactive
- Biggest network upgrade/hardfork in years in May 2023 (more efficient smart contracts, L2 capabilities)https://t.co/sqb2gtE1tS pic.twitter.com/ESaslrDfHv
— Andrew Kang (@Rewkang) January 12, 2023
Other fundamental factors that may strengthen bitcoin cash’s price rise include it potentially becoming legal tender in St. Kitts and Nevis, a Caribbean country, as early as March 2023. The plan is not confirmed but was said to be in the discussion stages in November last year.