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Bitcoin Cash (BCH) has defied the downward trend of bitcoin, showing an impressive 11% gain in the last 24 hours.

Bitcoin's price decline is a result of network congestion that occurred during the weekend, leading to a significant surge in transaction fees. This surge was caused by a high demand for Bitcoin transactions, which put pressure on the network's capacity.

Market analysts are suggesting that BCH, which was developed to be more efficient and cost-effective than the original Bitcoin blockchain, may have gained an advantage from the backlog of transactions on the Bitcoin network. As a result, BCH's scalability and lower transaction fees have made it a more attractive alternative for users seeking faster and cheaper transactions.

On Tuesday, BCH stood out among other digital assets by showing positive gains in its trading price, reaching a value of over $122.

“Bitcoin cash is a fork of Bitcoin so the market is speculating that there will be some spillover as a result of high fees/congestion,” Arca trader Kyle Doane said in a note to CoinDesk. Doane noted that the uptick for bitcoin cash will most likely be short-lived.

Binance, which is recognized as the world's largest crypto exchange, had to halt Bitcoin withdrawals for a brief period because of the surge of pending transactions on the Bitcoin blockchain over the weekend. This unexpected backlog of transactions caused a delay in processing times and put a strain on the network's capacity.

Yet Laurent Kssis, crypto advisor at CEC Capital, said that he doubts that the two are related. “I’m not confident BCH’s rise is a result of bitcoin’s network congestion as the move is not that detrimental to btc,”

Kssis added: “Sure BTC is dropping but this has been in the cards for a few days.

Bitcoin's current trading price is around $27,600, which is relatively unchanged from Monday and roughly the same as its value at the start of the month. However, last week Bitcoin's price was closer to $30,000, which is significantly higher than its current level.

Kssis has forecasted a potential drop for Bitcoin Cash (BCH) back down to approximately $110, citing the lack of strong support for the current upward price movement. It remains to be seen whether BCH will be able to maintain its current level or experience a further decline in value.

Source Coidesk