Quick take:
- Kim Dotcom is bullish on Bitcoin Cash (BCH)
- He expects the digital asset to be valued at $3k and above by next year
- He cites crypto adoption as one reason Bitcoin Cash (BCH) will thrive
- According to Kim Dotcom, Bitcoin Cash is faster and cheaper to transact when compared to Bitcoin
Renowned internet entrepreneur and the creator of MegaUpload, Kim Dotcom, has forecasted that the value of Bitcoin Cash (BCH) could go as high as $3,000 by next year. According to Mr. Dotcom, Bitcoin Cash is great for payments when compared to Bitcoin which is regarded as a store of value. Furthermore, more vendors will start accepting crypto and Bitcoin Cash (BCH) is best placed to fill this niche due to its low fees and faster transactions when compared to Bitcoin.
Kim Dotcom’s comments on Bitcoin Cash (BCH) were made via the following tweet.
Bitcoin > great for asset storage
Bitcoin Cash > great for paymentsBitcoin Cash at $310 today.
I expect $3000+ next year.Why?
More and more vendors accept crypto. Vendors want low fees and fast transactions.
I’m bullish on BCH.
I’ll retweet this in a year.
Maybe earlier.— Kim Dotcom (@KimDotcom) December 17, 2020
Bitcoin Cash (BCH) Pumps by 16% in Less than 24 Hours
A quick glance at the Bitcoin Cash chart reveals that BCH has experienced an impressive pump today, December 20th. Earlier today, Bitcoin Cash was trading at $315 before pumping hard to a local high of $367. This is a 16.5% increment in less than 24 hours.
With this move, Bitcoin Cash has printed what looks like a double-top as seen in the daily BCH/USDT chart below.
However, Bitcoin Cash (BCH) could be gearing up for another push higher due to the following.
- The daily trade volume is in the green with the daily MACD confirming bullishness
- The current value of Bitcoin Cash is above all three moving averages: 50-day, 100-day and 200-day
- The daily MFI is yet to be exhausted at a value of 72
- The daily RSI is also at 72 and hinting at a brief continuation of bullishness
- $367 is acting as stiff resistance for Bitcoin Cash
- Other areas of resistance can be found at $400 and $430
Conclusion
Popular internet entrepreneur, Kim Dotcom, has forecasted that Bitcoin Cash (BCH) could be valued at $3,000 next year. His analysis is based on increased crypto adoption that will lead to vendors preferring cheaper and faster transactions via BCH than Bitcoin.
From a Technical analysis point of view, Bitcoin Cash has had an impressive 16.5% increment in less than 24 hours and is looking to capture the $400 price area in the days to follow.
However, as with all analyses of altcoins, the future of Bitcoin Cash in the crypto markets is very much tied to that of Bitcoin. If the King of Crypto is stable, BCH could thrive. But if Bitcoin experiences extreme volatility in either direction, Bitcoin Cash will most likely experience a dip.
