Daily Bitcoin Cash BCH Price Analysis
After climbing from $400 to $720 between February 1 and February 14, the Bitcoin Cash price seems to be trending horizontally and consolidating below $720. So, is a move to $800 in the cards? Let’s check it out.
Bitcoin Cash Price Is Currently Overvalued
Looking at the daily Bitcoin Cash price chart, we can see that BCH tried to break above $750 thrice but was forced to retract every single time. Plus, the relative strength index is hovering horizontally in the overbought zone, which could hint at an upcoming bearish correction.
However, do note that the Bitcoin Cash price is sitting on top of two healthy support levels at $700 and $685. At the former, 93,500 addresses had purchased 1.35M BCH tokens. This level is robust enough to absorb a lot of selling pressure.
The MACD in the 4-hour Bitcoin Cash price chart shows sustained bearish momentum, which should trigger a drop in price. However, as we can see, the 20-bar SMA has stubbornly refused the price to drop any further.
Bitcoin Cash Is Expected To Reach These Levels
We expect Bitcoin Cash price to keep trending between the $720 and $730 level.
Bitcoin Cash price has found steady support at the 50-day SMA.
BCH has a strong resistance barrier at $510.
Bitcoin Cash price has jumped from $443 to $493, gaining more than $50 in its overall valuation. Let’s take a closer look at the price action with technical analysis.
Bitcoin Cash Price Finds Steady Support At 50-day SMA
Since January 28, The Bitcoin Cash price has jumped from $378 to $493, gaining around $115 in total valuation. In the process, the 20-day SMA has reversed from resistance to support. Note that the relative strength index (RSI) has yet to go into the overbought zone, giving more space for growth.
As we can see, there is a strong resistance barrier at $510. Previously, at this level, 77,500 addresses had purchased 842,500 BCH tokens. This level has so far proved to be extremely robust. Breaking past this should take BCH to $550.
The 4-hour Bitcoin Cash price chart shows two very positive signs:
The MACD shows sustained bullish momentum.
The parabolic has flipped from bearish to bullish.
Bitcoin Cash Upgrades Won’t Cause Permanent Forks
Bitcoin Cash (BCH) developers have recently assured the crypto community that the blockchain network is unlikely to experience a chain split when it undergoes the next upgrade on May 6, 2021.
Cameron Lee, a musician who accepts BCH for payments, had asked the devs if there will be a split during the blockchain’s upcoming upgrade. During Bitcoin Cash’s 2018 hard fork, he noted that a faction split off to create a new blockchain called Bitcoin SV led by Craig Wright.
Bitcoin Cash developer Josh Green responded by saying that future splits are unlikely. He noted that it would be “difficult for a split to happen at this point,” as an alternate node team would need to deliberately advocate for change and gain a prominent share of Bitcoin Cash’s mining power.
Paul Wasensteiner, Executive Director of the Bitcoin Cash Association, said that the goal is to not have any splits at all, ideally for several years. He added that developer discussions help prevent splits by bringing together the blockchain’s ecosystem. He added:
It’s not just about May, it’s about all of the foreseeable future of Bitcoin Cash.
Another developer, Emergent Reasons, noted that Bitcoin Cash and similar blockchains are designed so that miners can intentionally split the blockchain. However, he says that there is “basically no chance” of that as nobody desires a split.
Reasons concluded that there is no single approach that will ensure that splits do not occur in the future. However, he noted that the development community aims to establish a culture that instantly clarifies how companies and devs feel about proposed changes.
Kim Dotcom, political activist and founder of the now-defunct file hosting service MegaUpload, has “officially” joined the Bitcoin Cash (BCH) community, as per a tweet this morning.
The announcement comes a year after Kim moved over to evangelizing Bitcoin Cash, citing the “toxic” and infighting Bitcoin community as the main cause.
Kim said he will lead efforts to make BCH the world’s “leading electronic cash solution,” adding that he shall work towards greater adoption of the cryptocurrency and tie up with online vendors to increase its user base.
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The German-Finnish entrepreneur gained fame in the early 2000s after becoming a dotcom millionaire (hence the peculiar surname) and living a lavish life. He was convicted of fraud by the US government in 2012. Since then he has worked as a political activist in New Zealand and been an outspoken crypto advocate.
Meanwhile, when asked about why Bitcoin Cash over Bitcoin, Kim said on Twitter today, “Because it works. Low fees, fast transactions, easy to use, and secure. I looked at all cryptos to use for my upcoming new innovation and Bitcoin Cash ticked all the boxes.”
He added, “BCH is already implemented with 100K+ vendors and that number is increasing rapidly.”
The activist further claimed to utilize his network and the power of “genius marketing” to popularize Bitcoin Cash over other cryptocurrencies among the general public.
Toxic Bitcoiners drove Kim Dotcom to Bitcoin Cash
German-Finnish Internet entrepreneur and political activist Kim Dotcom has expressed distaste at the levels of infighting in the Bitcoin community. Dotcom, who is working on an eponymous crypt...
Despite the comments, Kim’s not wholly trashing Bitcoin. He said in the comments of his tweet that Bitcoin now functioned better as a store-of-value cryptocurrency (a point that even fund managers and tech firm owners seem to share), while Bitcoin Cash was better for making online payments. Not everyone seemed to share that view, however.
German-Finnish Internet entrepreneur and political activist Kim Dotcom has expressed distaste at the levels of infighting in the Bitcoin community. Dotcom, who is working on an eponymous crypto project, backed Bitcoin Cash proponent Roger Ver, pointing to the innovation in the BCH community.
During last week's On The Record podcast with cryptocurrency derivatives trader Tone Vays and statistician Willy Woo, Dotcom said, “I am looking at the reality of crypto today and all this fighting. Real innovation is not being recognized because of this fighting, because of the toxicity.”
He went on to say that this infighting is damaging the reputation of the whole crypto community, blasting “pissing matches” between prominent industry figures.
Dotcom pointed out that the cryptocurrency industry can still be considered very small, claiming that just 2 percent of Internet users have been exposed to the sector. Woo argued that it could expand to 16% or more in the future. However, he said the coin that will catch mainstream appeal might not be Bitcoin but Bitcoin Cash.
"They [new adopters] don’t know anything about the current wars that are taking place, the current toxicity within the crypto community. They are going to go with the currency that gives them the cheapest fees, the fastest transactions, the most reliability [...] unfortunately, that is not [BTC]."
Dotcom said he had sat down with Ver and looked at his latest experiments for Bitcoin Cash, saying the Bitcoin.com founder was a step ahead of everyone else.
"[Ver] is working on some really cool stuff, in terms of security and privacy. And I also agree with his argument: In order to be a very successful cryptocurrency you need to provide fast and cheap transactions, there's no way around that. It's nice to be a store of value, but if you really want to succeed in this game, you need to be THE electronic cash."
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