Bitcoin Cash (BCH) 2024 Outlook: Fundamental and Technical Analysis.

The scalability debate within the Bitcoin ecosystem continues to shape the crypto landscape, with Bitcoin Core (BTC) facing increasing scrutiny. As users discover the limitations of BTC as both a medium of exchange and a store of value, attention turns to Bitcoin Cash (BCH) as a potential alternative. This comprehensive analysis explores the fundamental and technical aspects of Bitcoin Cash in 2024, shedding light on its potential for growth and adoption.

Fundamental Analysis:

1. Ordinals Implementation and Developer Exodus: The discreet implementation of Ordinals in the Bitcoin Core project has resulted in a perception of fewer capable developers, as those with the necessary expertise may have sought opportunities elsewhere. A notable contrast is observed in the Bitcoin Cash community, which openly addressed and resolved an inflation bug, highlighting the importance of transparency and developer competence. Rising transaction fees, especially before a substantial bull run, may push Dollar-Cost Averaging (DCA) users to custodial solutions or prompt them to seek alternatives, like Bitcoin Cash, for smoother transactions and lower fees.

2. Censorship Risks and Lightning Network Challenges: The potential extension of censorship to actual transactions by Bitcoin maximalists raises concerns about the decentralized nature of BTC. Additionally, the Lightning Network's inefficiency during periods of high fees, as indicated by its white paper it needs 133Mb blocks, further underscores the need for alternatives. Bitcoin Cash, with its commitment to low-friction transactions and innovative features like CashTokens, emerges as an attractive option for users seeking financial freedom.

3. Bitcoin Cash Appeal: These fundamental issues may drive a new wave of users towards Bitcoin Cash, especially those desiring a seamless and functional cryptocurrency experience. The inclusion of CashTokens, offering DeFi capabilities with low fees, enhances the appeal of Bitcoin Cash as a versatile blockchain network.

Technical Analysis:

Title: "Bitcoin BCH 2024 Analysis: Unveiling Opportunities Amidst Bitcoin Core Challenges"

Article:

Introduction: The scalability debate within the Bitcoin ecosystem continues to shape the crypto landscape, with Bitcoin Core (BTC) facing increasing scrutiny. As users discover the limitations of BTC as both a medium of exchange and a store of value, attention turns to Bitcoin Cash (BCH) as a potential alternative. This comprehensive analysis explores the fundamental and technical aspects of Bitcoin Cash in 2024, shedding light on its potential for growth and adoption.

Fundamental Analysis:

1. Ordinals Implementation and Developer Exodus: The discreet implementation of Ordinals in the Bitcoin Core project has resulted in a perception of fewer capable developers, as those with the necessary expertise may have sought opportunities elsewhere. A notable contrast is observed in the Bitcoin Cash community, which openly addressed and resolved an inflation bug, highlighting the importance of transparency and developer competence. Rising transaction fees, especially before a substantial bull run, may push Dollar-Cost Averaging (DCA) users to custodial solutions or prompt them to seek alternatives, like Bitcoin Cash, for smoother transactions and lower fees.

2. Censorship Risks and Lightning Network Challenges: The potential extension of censorship to actual transactions by Bitcoin maximalists raises concerns about the decentralized nature of BTC. Additionally, the Lightning Network's inefficiency during periods of high fees, as indicated by its white paper, further underscores the need for alternatives. Bitcoin Cash, with its commitment to low-friction transactions and innovative features like CashTokens, emerges as an attractive option for users seeking financial freedom.

3. Bitcoin Cash Appeal: These fundamental issues may drive a new wave of users towards Bitcoin Cash, especially those desiring a seamless and functional cryptocurrency experience. The inclusion of CashTokens, offering DeFi capabilities with low fees, enhances the appeal of Bitcoin Cash as a versatile blockchain network.

Technical Analysis USD:

Price Action and Support Levels: Monthly charts illustrate robust support below the $100 level and resistance around $700. The formation of a pennant as a mid-term pattern suggests a potential breakout, particularly if fundamentals play a significant role. While the long term may be characterized by a bear rally, breaking the blue line could trigger a bullish pattern, possibly reaching an all-time high against USD.

In the weekly, we could see the Gaussian channel and MAs for an idea of where the price way go within the next 3 to 4 months.

Gaussian Channel and Support Areas: The Gaussian channel serves as a potential support area below $200, and surpassing the 280MA could signify the start of a new bear rally in the mid-term and a long-term bull run. Against BTC, Bitcoin Cash has established a solid support area below 0.004, testing a mid-term support trend line at the bottom of the weekly Gaussian Channel. As users recognize the limitations of BTC, Bitcoin Cash's technical indicators may gain more significance.

Technical Analysis BTC:

Against BTC, Bitcoin Cash has solidified a robust support level below 0.004 and is currently undergoing a test of a mid-term support trend line situated at the bottom of the weekly Gaussian Channel. The strength of this support becomes increasingly evident as users recognize the growing impediment of Bitcoin transaction fees, which can consume a significant portion of profits—ranging from 10% to 50%. This is particularly impactful for users with holdings between $100 and $1000.

While those utilizing Lightning Network (LN) channels may not be experiencing issues at the moment, it's a matter of time before they too face challenges. As LN channel liquidity approaches parity with on-chain transaction fees, users— even those with channels boasting a modest 0.01 BTC liquidity—could begin to encounter complications. The current struggles faced by smaller participants in the Bitcoin ecosystem are pushing them to seek alternatives, further bolstering the outlook for Bitcoin Cash as a viable and efficient option.

Conclusion:

As Bitcoin Cash positions itself as a functional and user-friendly version of Bitcoin, users may increasingly turn to its network for efficient transactions and lower fees. The analysis suggests that Bitcoin Cash has the potential to thrive in 2024, especially as users seek alternatives in response to rising transaction fees and censorship concerns within the Bitcoin Core community.