The Bitcoin Cash (BCH) currency, which started operations by hard fork from the Bitcoin (BTC) network, suffered a sharp decline. The BCH / BTC pair fell to all-time lows after Tesla CEO Elon Musk stated that they would offer “BTC only support” in terms of payment.
A TV series on March 24 tweetCEO and “Technoking” at Elon Musk confirmed that US customers can now buy a Tesla using BTC – but his company avoided “fork products” like BCH.
Bitcoin Cash couldn’t straighten its back
BCH, which left the Bitcoin blockchain network in August 2017, has seen a lot of controversy since then. Its supporters state that they preferred it because of the much lower BCH fees compared to Bitcoin. Because the transactions take less time and require less processing power.
BCH / BTC parity, on the other hand, continues to decline, being greatly affected by the developments experienced. The pair has plummeted to all-time lows, according to data from TradingView.
Weekly candlestick chart for the BCH / BTC pair. Source: TradingView
As of Wednesday, the value of 1 BCH has dropped to the level of 0.089 BTC.
The Tesla company statement, “You cannot shop with us using any other digital asset, including Bitcoin hard fork products such as Bitcoin Cash and Bitcoin SV,” had a direct impact on the price. Stating that “their digital wallets only accept Bitcoin”, the company emphasized that they “configured it to not accept digital assets other than this”.
The collapse is clearly visible in a short period of time
Bitcoin Cash, which has been among the top 10 cryptocurrencies by market value for a long time, fell behind USD Coin (USDC) in 13th place according to current data. BCH, which has decreased in value against Bitcoin, appears to be experiencing a sharp decline in the short term against the dollar.
Hourly candlestick chart for the BCH / USDT pair. Source: TradingView
The BCH price, which moved between $ 500 and $ 550 in the last week, fell sharply in the first hours of March 25. After Tesla’s announcement, more than 10 percent value loss was seen in 5 hours. BCH, which entered the new day at $ 508, dropped to $ 450 levels when the first lights of the day were seen.
Bitcoin Cash, which rose to $ 477 at the time of the publication of the news, wants to capture the value of the previous day. The 20-hour exponential moving average (EMA) ($ 482.23), showing signs of recovery after a sudden drop, seems to be the first target.
On the other hand, the relative strength index (RSI) is now approaching the midpoint after pointing to oversold. As can be seen from the long queue on the red candlestick in the first hours of the day, it is clear that there is heavy buying from the bottoms.
If the bulls increase purchases and the price moves above the 20-EMA level, the next target will be around $ 505, where the 50 hourly simple moving average (SMA) is located. A quick rebound could bring back the corridor movement observed last week.
On the other hand, if bears are dominant income and sales rise again, below the weak support of $ 440 in the short term is the $ 432 level that has not been tested since February.
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