Bitcoin Cash (BCH) May Be a Better Buy than Litecoin (LTC) as the Latter Awaits ETF Approval

Litecoin price has done well as it surged from $50 in August last year to $130 today. Most of these gains happened after Canary filed for a spot LTC ETF

Litecoin (LTC) price has done well as it surged from $50 in August last year to $130 today. Most of these gains happened after Canary filed for a spot LTC ETF, which has higher chances of approval by the Securities and Exchange Commission (SEC).

In a surprising move, Bitcoin Cash (BCH) price has done worse and is down to $320, which is lower than Litecoin’s price. This is despite Bitcoin Cash being a larger coin than Litecoin. So, what gives? We explore why the forgotten Bitcoin Cash may be a better option for now.

Bitcoin Cash price is stuck in a bear market

Litecoin and Bitcoin Cash are almost similar assets in that they are both Bitcoin hard forks that use the same technology. However, Litecoin is smaller and has a faster transaction speed.

In terms of performance, the two assets have also been almost the same. However, BCH remains in a bear market as it crashed by about 46% from its highest level in December last year. It has recently crossed death, with the 50-day and 200-day Weighted Moving Averages (WMA) flipping each other.

Moreover, the Bitcoin Cash price has formed a bearish flag chart pattern, which comprises a long vertical line and some consolidation. This pattern is often a sign of a bearish continuation. Therefore, we can expect to see a strong bearish breakdown in the coming days, with the next point to watch being at $273.4, which was the lowest level last week and in August last year. This price is about 20% below the current level.

On the other hand, the bearish outlook will become invalid if the Bitcoin cash price rises above the resistance at $365.

BCH price chart | Source: TradingView

Why BCH is a better buy than LTC today

Bitcoin Cash’s outlook is bearish for now, but there are signs that it is a better investment than Litecoin.

That’s because Litecoin has already received an ETF application, and analysts anticipate that the SEC will approve it. Moreover, LTC is similar to Bitcoin, and the SEC does not view it as a security.

The challenge, however, is that the market participants have priced in Litecoin’s ETF approval. This means that an approval will lead to its price going down, which is a classic case of buying the rumor, selling the news.

The opportunity for Bitcoin Cash is that it will likely receive an ETF application once Litecoin’s one is approved. Such a move will likely lead to higher prices as investors anticipate its approval over time.

The other opportunity is that the BCH price has formed a double-bottom pattern at $273, and the neckline is at $640. If it works, it means that the coin may rebound by about 87% from the current level and by 92% from its double-bottom point.