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Bitcoin Cash

Bitcoin Cash (BCH) As A Medium of Exchange Finds Stiff Competition From DAI, Tether, USDC

Bitcoin Cash (BCH) proponents forward a narrative of speed, security, scalability, and fast transaction settlement. All this has been made possible because of several enhancements that continue to be made on-chain.

For perspective, the Bitcoin Cash network has hard forked several times since August 2017. Amid the turbulence as they angle to be a preferred medium of exchange, the network now competes with ERC-20 stable coins including Tether, DAI, and USDC despite their adoption of Zero confirmation transactions.

Stable coins like DAI, USDT, USDC over BCH?

While zero confirmation transactions will be settled faster, it is entirely based on trust. Otherwise, the delay will be longer and not as convenient given the block generation time, which is on average 10 minutes.10 BTC & 20,000 Free Spins for every player in mBitcasino’s Winter Cryptoland Adventure! 

Meanwhile, the faster block generation time in Ethereum means ERC-20 tokens achieve finality faster and the transaction more secure since all transactions are confirmed and registered on the network.Advertisement

Besides, the lack of price volatility in ERC-20 stable coins like DAI, Tether (USDT), and USDC, mean they are more attractive for merchants who may need to transact while rebuffing undesirable price fluctuations.

“The payment use case for #BCH has been completely co-opted by stablecoins on Ethereum. Why rely on 0 confirmation transactions when you can have real finality in under a minute using DAI, USDC or Tether and not have to worry about price swings when HODLing?”

What is a Zero Confirmation transaction?
As the name suggests, a zero-confirmation transaction is a transaction that is yet to be confirmed by a miner and inherently susceptible to double spending. That is, a situation where BCH can be used to settle more than once.

This was defeated with transaction broadcasting that required confirmation from miners but for speed and convenience, Bitcoin cash developers diverged from this as they sought convenience and push for mass adoption. Ordinarily, the length it takes for a transaction to be confirmed will vary with time.

But regardless of how long it takes, it is imperative for the transaction to be confirmed at least once. This way, the transaction will be etched in the blockchain and secured. It takes 6 confirmations for a Bitcoin transaction to be considered valid.

Introducing the Avalanche Protocol
To counter against attacks and double spending, Bitcoin cash developers proposed the Avalanche protocol to cushion the merchant against trust violation from the buyer.

“Using Avalanche in Bitcoin Cash for miner coordination provides a very elegant, decentralized coordination mechanism that can potentially prevent miners from accepting double spend bribes and when combined with double spend notifications, make zeroconf transactions very secure.”

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Bitcoin Cash (BCH/USD) forecast and analysis on February 25, 2020

Cryptocurrency Bitcoin Cash (BCH/USD) is trading at 390. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bearish trend on Bitcoin Cash. At the moment, cryptocurrency quotes are moving near the middle border of the Bollinger Bands indicator stripes.

Bitcoin Cash (BCH/USD) forecast and analysis on February 25, 2020

As part of the Bitcoin Cash forecast, a test of level 405 is expected. Where can we expect an attempt to continue the fall of BCH/USD and the further development of a downward trend. The purpose of this movement is the area near the level of 342. The conservative area for sales of Bitcoin Cash is located near the upper border of the Bollinger Bands indicator strip at 406.

Bitcoin Cash (BCH/USD) forecast and analysis on February 25, 2020

Cancellation of the option to continue the depreciation of Bitcoin Cash will be a breakdown of the upper border of the Bollinger Bands indicator stripes. As well as a moving average with a period of 55 and closing of quotations of the pair above the area of ​​430. This will indicate a change in the current trend in favor of the bullish for BCH/USD. In case of breakdown of the lower border of the Bollinger Bands indicator bands, we should expect an acceleration in the fall of cryptocurrency.

Bitcoin Cash (BCH/USD) forecast and analysis on February 25, 2020 implies a test level of 405. Further, it is expected to continue falling to the area below the level of 342. The conservative sales area is located near the area of ​​406. The breakdown of the cryptocurrency fall option will be the breakdown of the level of 430. In this case, we should expect continued growth.

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Bitcoin Cash could shoot to $442 or dip to $352 over the next week

After touching nearly $500 in mid-February, Bitcoin Cash steadily made its way to the $370 level over the week that followed. Since then, members of the community have been eagerly anticipating a revisit of the $425 level, something that could happen in the next few days. However, a far more devastating dip could be in store as well.

According to CoinMarketCap, Bitcoin Cash had a market capitalization of over $7.1 billion, at press time, and was recording a 1.89% drop over the last 24-hours.

Source: Coinstats

Bitcoin Cash 1-hour chart

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Source: BCH/USD on TradingView

Bitcoin Cash appeared to have been moving through an ascending channel over the last few days. These patterns have an equal chance of bullish and bearish breakout outcomes, though an upward movement seems likely in the current scenario.

At the time of analysis, BCH‘s price was testing the pattern’s lower boundary, which could either result in a downward-facing breakout or a bounce-back to the upper trend line.

The Ichimoku Clouds indicator predicts potential price movements using moving averages at different intervals. Generally, green clouds under the price indicate price appreciation in the short-term. However, since the latest price candle was moving inside the cloud, some sideways movement might occur over the next couple of days.

The Stochastic RSI indicator had attempted to move back into the stable zone, but had later dipped back under, at the time of writing. The faster moving average had also crossed above the slower moving average, which is usually a sign of some bearish movement in the near future.

If Bitcoin Cash is able to push above the Ichimoku Cloud, the coin might see a rise to the upper trend line at $420 in the next week or so. This could facilitate a breakout to the next high volume node above the pattern, at the 38.2% Fibonacci retracement line ($442). However, if BCH dips lower, it could move down to the high volume node beneath the pattern, at $380, before falling to the 100% retracement line at $352 in around the same amount of time.

Volatility

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Source: CoinMetrics

According to CoinMetrics, Bitcoin Cash’s 60-day volatility has been steadily rising since mid-January, after a sudden spike toward the start of the year. Heightened volatility could strengthen BCH‘s price movements in the coming days. However, volatility can mean downward movements too and could result in a bearish breakout in the short-term.

Conclusion

If Bitcoin Cash manages to push above the Ichimoku Clouds, BCH could push above the pattern’s upper boundary and break out to the $442 level in the next week or so. However, if bearish pressure causes the price to break under the pattern, Bitcoin Cash could be in for a devastating drop to the $352 level over the same period of time.

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Bitcoin Cash Forecast and Analysis February 24 — 28, 2020

Bitcoin Cash ends the trading week at 378.20 and continues to move as part of the correction after strong growth. Moving averages indicate a bullish trend. Prices go to test the area between the signal lines, which indicates pressure from the sellers of the coin, but the growth potential is still there. As part of the forecast for the BCH/USD rate for the next trading week, we should expect an attempt to reduce the value of the digital asset and test the support area near the level of 335.05. Where again, a rebound is expected and an attempt to grow Bitcoin Cash with a potential target above the level of 585.05.

Bitcoin Cash Forecast and Analysis February 24 — 28, 2020

An additional signal in favor of the growth of BCH/USD quotes in the current trading week February 24 — 28, 2020 will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower boundary of the ascending channel. Cancellation of the growth option for the Bitcoin Cash cryptocurrency will be a fall and a breakdown of the area of ​​245.05. This will indicate a breakdown of the support area and a continued decline in BCH/USD quotes. A confirmation of the growth of the cryptocurrency will be a breakdown of the resistance area and closing of quotations above the level of 515.05.

Bitcoin Cash Forecast and Analysis February 24 — 28, 2020

Bitcoin Cash Forecast and Analysis February 24 — 28, 2020 implies an attempt to test the support area near the level of 335.05. Then continued growth to the area above the level of 585.05. An additional signal in favor of raising Bitcoin Cash will be a test of the broken trend line on the relative strength index (RSI). Cancellation of the growth option will be a fall and a breakdown of the area of ​​245.05. This will indicate a continued decline in cryptocurrency with a target below the level of 195.05.

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