Cryptocurrency Bitcoin Cash (BCH/USD) is trading at 473. Cryptocurrency quotes are trading above the moving average with a period of 55. This indicates a bullish trend on Bitcoin Cash. At the moment, cryptocurrency quotes are moving near the upper border of the Bollinger Bands indicator stripes.
Bitcoin Cash (BCH/USD) forecast and analysis on February 14, 2020
As part of the Bitcoin Cash forecast, a test of level 460 is expected. Where can we expect an attempt to continue the growth of BCH/USD and the further development of an upward trend. The purpose of this movement is the area near the level of 525. The conservative area for buying Bitcoin Cash is located near the lower border of the Bollinger Bands indicator strip at 433.
Cancellation of the option to continue the growth of the Bitcoin Cash rate will be a breakdown of the lower 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 below the area of 425. This will indicate a change in the current trend in favor of the bearish for BCH/USD. In case of breakdown of the upper 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 14, 2020 implies a test level of 460. Further growth is expected to continue to the area above level 525. The conservative buying area is located near area 433. The breakdown of the cryptocurrency growth option will be the breakdown of level 425. In this case, we should expect continued fall.
Bitcoin Cash Price Analysis: BCH/USD a wipe-out of 2020 gains possible
- Bitcoin Cash price is trading in the red, with losses of 11.30% in the second half of the session.
- BCH/USD the psychological $300 mark also support is at risk of being tested to the downside.
- The price is running towards its third consecutive session in the red.
BCH/USD daily chart
The price really lost much upside momentum, after failing to breakdown the psychological $500 mark.
BCH/USD 60-minute chart
Price action near-term has smashed out of a bearish pennant structure, the retest is in play at the time of writing, subject to rejection.
Spot rate: 312.10
Relative change: -6.30%
Bitcoin Cash mining pool BTC.TOP may be mining unprofitable blocks on purpose
The Bitcoin Cash network has experienced long wait times between mined blocks several times this month. Between 1-23 February, there were 59 blocks which took over an hour to be mined and interestingly, the BTC.TOP pool mined 37 of them.
The long wait times were likely due to how the network’s difficulty adjustment algorithm functions and this phenomenon has also been seen on the BTC network as well.
According to a developer who goes by the name ‘dskloet‘ on Reddit, the number of Bitcoin blocks expected to be found in a certain time follows a ‘Poisson distribution,’ a pattern that expresses the probability of a given number of events occurring over a fixed interval of time. He also explained how the time between blocks follows an ‘Exponential distribution’ — the probability distribution of the time between events in a Poisson point process.
By this logic, there is only a 16% chance of 6 blocks being mined in a given hour and twice a day, it takes over 42.5 minutes to mine a single block. For BTC.TOP to mine these blocks, they have been moving significant hashrate to the Bitcoin Cash network, against what is likely better judgment.
According to Bitcoin miner Jonathan Toomim, mining BTC is around 10% more profitable during these BCH ‘dry spells’ and BTC.TOP has been mining at a loss to reduce these long validation times. His estimates suggest that they have lost around $16,400 already and are en route to losing $20,000 this month.
Toomim also reported how this behavior had only started this month and that prior to February, BTC.TOP had been avoiding mining unprofitable blocks entirely. Between 15 December and 31 January, there were 175 blocks that took at least 1 hour to mine, of which only 6 were mined by the mining pool.
This change in behavior looks to be a directed effort towards improving transaction speed on the network at the expense of their own profits. Bravo, BTC.TOP.
This isn’t the first time BTC.TOP has been in the news lately, however. The mining pool was recently in the news after its CEO, Jiang Zhuoer, proposed the implementation of an ‘Infrastructure Funding Program’ to redirect a portion of mining profits to help developers on the BCH network.
Bitcoin Cash Price Prediction: BCH/USD Upside Movements Cut Short Under $350
BCH Price Prediction – February 25
The Bitcoin Cash (BCH) is trading in the red, with losses of 7.98% in the second half of the session.
Resistance levels: $450, $470, $490
Support levels: $270, $250, $230
At the time of writing, BCH/USD has adjusted lower from $377.48 which is the opening value to trade at $373.11. An attempt to pull upwards has been capped under $400 with $381.01 being the intraday high achieved so far. However, the Bitcoin Cash price upside is limited under $350 as well as the descending trend line resistance. The path of the least resistance remains to the south amid growing selling activities.
Since Bitcoin Cash couldn’t break above the 9-day and 21-day moving averages to move out of the channel for the price has had a bearish inclination for the past few days. It became an uphill task to sustain the gains above the critical $400 due to the renewed bearish momentum emanating from the rejection around $495.
However, if the market drives below the $300 support, BCH price could slump to $270, $250 and $240 support levels, bringing the price to a new low as the RSI (14) prepares to cross below the 40-level. Meanwhile, a strong buying pressure may take the price to $420 resistance. While trading at $420, a bullish continuation is likely to touch the $450, $470 and $490 resistance levels.
Against Bitcoin, the BCH market has evolved for a while in a very different way. But currently, the sellers are gaining control of the market as they move below the 9-day and 21-day moving averages around the lower boundary of the channel while the RSI (14) moves below the 40-level, indicating more bearish signals.
Similarly, the downtrend is seen giving the sellers the confidence to increase their entries. More so, if the bears succeeded in breaking below the channel, one would expect the market to fall to the support level of 0.033 BTC and 0.031 BTC. In other words, a rebound could increase the price to the resistance level of 0.043 BTC and 0.045 BTC.
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