- Bitcoin Cash is widely known to be the fork of original Bitcoin blockchain diverging from the path created by Satoshi Nakamoto to be a digital money
- The debates between believers of Bitcoin and Bitcoin Cash are still on-trend regarding transaction fees and cost
- While Bitcoin and Ethereum transaction fees reached a record high since the starting of the year, Bitcoin cash can be emerging as a potential substitute
What Was The Purpose Of Hard Fork?
In Cryptoverse, many of the coins and its blockchain make use of aspects that are already existing in Satoshi’s introductory program and theory. But, in some cases, others take the bitcoin model and attempts to bring upgradation or improvements. In these sort of improvements, the underlying concept of the blockchain gets distinctive, resulting in a method known as forking through which the blockchain itself is subdivided into two distinguishing entities. Historical examples of hard forks other than bitcoin cash are Bitcoin XT, Bitcoin Classic, Bitcoin Unlimited, Segregated Witness, etc. With the introduction of Segregated Witness (Segwit) by Bitcoin core developer Peter Wuille, the aim is to lessen each bitcoin transaction’s size, resulting in more allowance of transactions to take place at once. Segwit is considered a soft fork which was beginning of the initiation to convert it into a hard fork wherein Bitcoin Cash was introduced. Bitcoin Cash has been considered one of the most successful hard fork of Bitcoin. As of now, Bitcoin Cash stands at 11th position in terms of market capitalization.
How does Bitcoin Cash Transaction System work?
Bitcoin Cash Price Analysis: BCH finds support at $501, gears up for an uptrend?
- Bitcoin Cash price analysis is bearish for today, down by 8%.
- The cryptocurrency has found support at $501, while the nearest resistance is at $545.
- The entire crypto market is down owing to the China crypto crackdown news.
Bitcoin Cash price analysis for today is bearish since the cryptocurrency price is trading at $505. The 24-hour trading volume for the cryptocurrency has surged by 5.98%, while the market capitalization of Bitcoin Cash fell by 6.96%. According to the data by Coinmarketcap, the market dominance of BCH is currently at 0.51%.
Today, Bitcoin and other major altcoins have fallen by huge percentages. It is an undocumented protocol of the crypto market that the majority of altcoins will fall if Bitcoin fails to maintain an uptrend.
Bitcoin Cash price fell from $552 and is currently at $505. The investors suffered losses today. The nearest support for the BCH/USDT pair is found at $501, while the nearest resistance is at $545. The movement is a downtrend in the short term, and it seems that the buying pressure is unable to match the selling pressure.
Bitcoin Cash price analysis: Technical Indicators bearish
The Bitcoin Cash price analysis shows that the technical indicators on the 4-hour chart are bearish while the Bitcoin Cash price is hanging above the $501 support. This support level seems to hold for now while the bulls try to push the price towards the resistance at $545.
The key Moving Averages are high above the price action, and things have been like this since 7th September. Both the 100-day and the 50-day Moving Averages are far from the BCH price action, indicating a bearish trend in the short term. This month started with a bullish scenario, but it seems that it will end on a bearish note.
A few days ago, we saw the BCH/USDT price action break out of the lower end of the Bollinger Bands. Yesterday, the coin rose from $547.6 and surged to $552.7, trying to break out from the upper end of the Bands. However, unable to breach the 545 USD resistance, the price fell, and now, it seems that the price action will try to break out from the lower end of the Bollinger Bands.
Bitcoin Cash price analysis shows that the price of RSI level has turned bearish. The current RSI gives a reading below 40 but above 20. This implies that the BCH/USDT pair is not oversold but quite high selling pressure. The gradient is slightly negative but might turn positive if bulls take charge and buying pressure increases.
The MACD indicator shows that the blue line or the MACD line has fallen below the signal line or the orange line. This is called a bearish divergence and means that the price action will turn bearish in the short term. The histogram has started to turn red after a few green ones. It seems that we might see the price action to break down below the $501 support.
Bitcoin Cash price analysis: Conclusion
Bitcoin Cash price analysis can be concluded on a bearish note as the price is currently trying to hold above the $501 support. This is a very crucial support for BCH/USDT, and day traders should keep an eye on this one. Also, if you are searching for the long term Price Prediction of Bitcoin Cash, visit here.
Bitcoin Cash price analysis: BCH to move below $600 support level
- Bitcoin Cash price analysis suggests downwards movement to $580
- The closest support level lies at $610
- BCH faces resistance at the $650 mark
The Bitcoin Cash price analysis shows that the bears dominate the asset’s price action as BCH continues its downwards movement. On the other hand, the market volatility and the recorded trade volumes have shown a significant decline in the past few days compared to the start of September.
The broader cryptocurrency market observes a bearish market sentiment over the last 24-hours as most major cryptocurrencies record negative price movements. Major players include Elrond and EOS recording a 6.89 and a 6.42 percent decline respectively.
Bitcoin Cash price analysis: Bears dominate the market
Across the technical indicators, the MACD is currently bearish as exhibited by the red histogram showing seller dominance at press time. The indicator observed a bearish crossover two days ago and has remained red since. However, the recent hours have observed a declining in bearish momentum as BCH finds short-term support at the $610 mark.
The EMAs are currently moving downwards showing strong selling activity in the markets. The 12-EMA is currently moving with a steeper slope suggesting further divergence from the 26-EMA.
The RSI has remained neutral for the last ten days since briefly dipping to overbought region on September 7. Currently the RSI trades at a low level near the 40.00 index unit mark showing low bearish dominance. The indicator is currently moving downwards suggesting a selling pressure at the current price level. The indicator’s current position leaves room for downwards movement before a trend correction
The Bollinger Bands are currently narrow but do not show further convergence or divergence. Instead, both the indicator’s upper and lower limits move with a slight decline as BCH continues to observe low volatility in a bearish trend. While the bands suggest bearish dominance they also show that volatility will remain low in the short-term.
Technical analysis for BCH/USDT
Overall, the 4-hour Bitcoin Cash price analysis issues a sell signal with 16 of the 26 major technical indicators suggesting a downwards movement for BCH across the timeframe. On the other hand, none of the indicators issue support for the bulls suggesting little to no buyer activity in the markets. At the same time, ten indicators remain neutral and do not issue support for either side of the market.
The 24-hour Bitcoin Cash price analysis shares this sentiment and shows 14 indicators suggesting support for the bears against only two indicators suggesting an upwards movement. Meanwhile, the remainin ten indicators sit on the fence and do not issue any signals at press time. The analyses’ negative sentiment suggests that BCH may observe a downwards breakout from the channel.
What to expect from the Bitcoin Cash price analysis?
The Bitcoin Cash price analysis suggests further consolidation as the trade volume and the market momentum remains low. However, the price can be expected to observe a downwards breakout from the channel falling to the $600 mark and below. The mid-term technical analyses support this suggestion and suggest a drop to the $580 mark.
Bitcoin Cash Forecast September 20 — 24, 2021
Bitcoin Cash ends the trading week at 626.52 and continues to move as part of the correction and the bullish channel. Moving averages indicate a bullish trend. Prices have broken the area between the signal lines upwards, which indicates pressure from buyers of the coin and a potential continuation of the rise. As part of the BCH/USD rate forecast for the next trading week, we should expect an attempt to reduce the value of a digital asset and a test of the support area near the level of 415.05. From where a rebound is expected again and an attempt to raise the Bitcoin Cash cryptocurrency with a potential target above the level of 1165.55.
Cryptocurrency Bitcoin Cash Forecast September 20 — 24, 2021
An additional signal in favor of raising the BCH/USD quotes in the current trading week September 20 — 24, 2021 will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the option to raise Bitcoin Cash cryptocurrency next trading week will be a fall and a breakdown of the 305.05 area. This will indicate a breakdown of the support area and a continued fall in BCH/USD quotes with a target below 135.05. Confirmation of the rise in the cryptocurrency will be the breakdown of the resistance area and the closing of quotations above the level of 855.05, which will indicate the completion of the formation of the inverted ”Head and Shoulders” reversal pattern.
Cryptocurrency Bitcoin Cash Forecast September 20 — 24, 2021 suggests an attempt to test the support area near 415.05. Then continued growth to the area above the level of 1165.55. An additional signal in favor of the rise in Bitcoin Cash will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option will be a fall and a breakdown of the 305.05 area. This will indicate a continued decline in cryptocurrency with a target below 135.05.
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