Bitcoin Cash Under Pressure Slips -0.95% After Split Into Two Blockchains While BCHA Emerges as Positive Performer

  • Bitcoin Cash builds the Symmetrical triangle pattern, on daily chart faced rejection from the resistance and bounces from the support line  
  • The pair of BCH/USD slips about -8.96% standing at 0.01372671 BTC
  • The division of Bitcoin Cash into Bitcoin Cash Node (BCHN) and Bitcoin Cash ABC (BCHA) caused by a controversial proposal by the team management

Bitcoin Cash Price Levels Shows Volatility as Hard Fork Goes Public 

A group of Bitcoin Cash Developers known as BCH ABC kept their proposal for an update on the BCH network. The proposed update includes a new controversial Coinbase Rule, for which the system needs to distribute 8% of the mined BCH to the Bitcoin Cash ABC network to finance protocol development. However, the proposal was opposed by another development group of Bitcoin Cash, known as Bitcoin Cash Node. Node group has removed the miner’s tax from the source code. 

However, when any node adopts a hard fork on the network, the blockchain gets split into two parts. Likewise, in the Bitcoin Cash network, the central division of the community caused the split into two competing systems.

Bitcoin Cash ABC Emerging as Surprising Element Among The Forks

After the split of Bitcoin Cash, we observed that Amaury Sachet’s Bitcoin Cash ABC (BCHA) was suffering to gain hash power. Recently Bitcoin Cash ABC (BCHA) shows a sign of life, as on Wednesday, the token was up by 70% after the developer publicized a new upgrade for their client software. 

Following Sunday’s hard fork, Bitcoin Cash ABC (BCHA) was getting smashed by Bitcoin Cash Node (BCHN) in a short hash war. The news of the hash war spread a rumour in the space that Bitcoin Cash ABC (BCHA) is about to disappear from the network. However, after yesterday’s announcement of a new upgrade, Bitcoin Cash ABC (BCHA) is now able to take much needed breathes to survive on the network.

According to data from CoinMarketCap, it was observed that Bitcoin Cash ABC (BCHA) opened trading at $11.78. Currently, the token is trading with a considerable volume on several crypto exchanges. We observed that the token’s poor record was at $10.50 and high at $21, after which it settled in the range of $19 to $20. The metrics showed around a 70% increment in its price over 24 hours. However, Amaury also indicated positivity for the future of Bitcoin Cash ABC (BCHA) via a tweet. Amaury mentioned that he would remain with the community of ABC.

Price levels Slip Below Technical Radars As BCH Faces Rejections. 

bch1
Source: Tradingview

On the One-day candlestick chart, Bitcoin cash (BCH) is trading in the symmetrical triangle pattern and tries to stay above the resistance line, but it fails to break out from the pattern observed on the daily chart. After taking the support from the rising support line, it again bounces off, but the resistance line pushes it down. The coin is currently trading at the mark of $247.45 with intraday loss of -0.95% supported by the 24-hours volume of $2,116,490,138, and the market capitalization stands at $4,596,515,287.

The first support for BCH is placed on the downside at $241; meanwhile, the second support is at $222 taken out from the rising support line, and the resistance at the higher side is at $260, and the long term target is $350. 

bch2
Source: Tradingview

Bitcoin is facing rejection from the 100-day EMA and likely to remain inside the triangle pattern, on the daily chart it is also facing rejection from 20 EMA indicating a bearish crossover heading for the lower levels of $241 & $222 in the coming days. The descending triangle pattern over the monthly chart showing the adverse price action can be seen in the future trading sessions.   

bch3
Source: Tradingview

The 20 EMA is still not showing any direction; however, it is moving closer to 50 EMA indicating the negative upcoming trend and after the bearish crossover of 20 EMA over 50 EMA supporting Bear’s action. 

Resistance level: $260 & $280 

Support level: $241 & $222

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Vasu Singhal
Vasu Singhal is a management student and a stock market trader. He believes that investment avenues and opportunities are very diversified. Therefore, he has an interest in blockchain technology too. He likes to evaluate best investments available in the financial market with showcasing the required skills.

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