Bitcoin Cash hashrate, mining difficulty skyrocket as miners chase BCH profits

Bitcoin Cash (BCH) has been in the limelight recently with huge gains in the current overall crypto market rally. Its price has soared more than 200% most recently this month after it listed on EDX Markets, a new exchange backed by major institutions.

Trading also rose on major Korean exchange Upbit. This led to a significant increase in overall hash rate and mining difficulty as miners migrated to the blockchain in pursuit of profits.

Bitcoin Cash hash rate hits highest level in two years

According to statistics From Coinwarz, BCH hash rate In the last hours of June it exceeded 5.45 EH/s, reaching its highest point in two years. The increased hash power means that the BCH network has become increasingly secure as miners move to the blockchain. Mining also hit hard and it rose to 494.8 grams in less than a day.

While frequent difficulty adjustments may affect mining profits in the short term, the growing interest in Bitcoin Cash mining is a good sign for the network.

BCH mining difficulty touches two-year highs | Source: CoinWarz

The rally in Bitcoin Cash price and mining metrics has put pressure on those short selling BCH futures contracts. The combined amount of money lost on BCH-tracked futures shorts and longs was more than $25 million, the largest in two years.

All this comes ahead of the bitcoin cash halving events This is expected to happen in May 2024, which will cause the block reward to be cut in half. The rapid increase in mining difficulty and hash rate can be added to this. However, considering that is almost a year away, it is more likely that the altcoin recovery and price volatility over the past week are to blame.

BCH Price Action

The future price outlook for Bitcoin Cash remains highly uncertain, given that the current rally has come as a surprise to many investors. The next several weeks will be crucial in determining whether this rally has enough energy to propel bitcoin cash to new highs in 2023, or whether it fails.

BCH holds steady at $288 | Source: BCHUSDT on TradingView.com

Currently, BCH appears to be overbought on various indicators such as the Relative Strength Index. Overbought means that the price has expanded to the upside. The price action seems to have calmed down, as the cryptocurrency is now facing rejection near $300.

The 50-day and 200-day EMAs suggest that the price may continue to move higher. However, if the current momentum stalls and BCH faces a strong rejection, BCH price could erase its recent gains.

BCH is now trading at $288 and is down 1.31% over the past 24 hours. The increase in BCH price has led to its market cap exceeding 5.58 billion, making it the 14th largest cryptocurrency in the region.

Featured Image from Finbold, Chart from Tradingview.com