Bitcoin Cash price doubled before hard fork – What’s next?

The price of Bitcoin Cash (BCH) has returned to the top 10 in market capitalization as of Thursday, after a 52% increase as of May 5th. While the BCH price found buyers from the lowest $ 939 in just one day, it climbed to $ 1,477 at the end of the day.

According to data obtained by Cointelegraph Markets and TradingView, the price increase observed within 10 days exceeded 100 percent.

Hard fork triggered the bulls

Bitcoin Cash, which has been in the top 10 in terms of market value for a long time, seems to have been born from the ashes after it lost its popularity.

There was an intense buying process before the hard fork process, which is held every two years and is expected to take place on May 15. Two small additions will be made to the network. However, these are not trivial at all.

First of all, the limit in the unconfirmed transaction chain of Bitcoin Cash is removed. This way, more micro-transactions can be processed without having to wait for block confirmation.

In Bitcoin Cash, blocks are formed every 10 minutes and the unverified chain limit was limited to 50. This limit will be completely removed by hard fork.

Another big change planned for May 15th is the inclusion of multiple “OP_RETURN” outputs. Simply put, the Bitcoin Cash blockchain; It allows various outputs such as text, images and similar data types to be added to the process. Currently, only one “OP_RETURN” output can be included in transactions. In other words, an element such as an image or text can be added. With the network upgrade, multiple pieces of data can be included in a single transaction.

Bitcoin Cash teknik analiz

The BCH price clearly broke the $ 1,219 resistance after moving below $ 1,050 for days. Although profit gains occurred as of May 6, the bulls increased their support, as evidenced by the long tail on the daily candle.

Daily chart of the BCH / USDT pair. Source: TradingView

From this point on, if the bulls manage to keep the price above $ 1,219, the BCH / USDT pair could rise up to $ 1,710.

On the other hand, if the bulls fail to keep the price above $ 1,186, where the 38.2% Fibonacci retracement level is calculated, the pair is likely to fall rapidly to $ 1,050. However, if the pair bounces up from this level, the bulls can attempt to begin the next leg of the uptrend.

However, the break below $ 1,050 will show that supply exceeds demand. Subsequently, a pullback may come up to the 20-day exponential moving average (EMA) ($ 985).

The opinions and comments expressed here belong only to the author. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.

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