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Bitcoin Cash Price Analysis: BCH Needs Community Support

Bitcoin Cash Price Analysis: BCH Needs Community Support

This analysis brought to you by RoboForex.

On Tuesday, November 17th, the BCH is growing, trading near 252.50 USD.

On D1, the Bitcoin Cash keeps moving in a sideways channel. The quotations have bounced off the support level and are trading at 38.2% Fibo. A breakaway of this level and securing above it will become an additional signal for growth with the aim at the next level of 50.0%. The MACD is below zero, which might mean an upcoming minor correction. Comparing the data from the chart and the indicator, we might expect a small correction and then growth to 268.00 USD.

Om H4, the Bitcoin Cash is trading above 38.2% Fibo. Currently, this is another signal of further growth with the aim at 50.0%. The Stochastic is on the verge of forming a Golden Cross at the oversold area, which may signal for the end of a pullback and soon continuation of the ascending impulse. The aim of the growth is the same as on D1 — 268.00 USD.

After a hardfork in the Bitcoin Cash network on November 15th, the network again "split in two". Anyway, the update was not take positively in the market: some investors think that the project is unstable, and its future is vague. Some fans of the BCH are sure that constant conflict hardforks (this one was the third in four years) split the crypto community in two parts, which is harmful for the token.

Experts think that the lack of market support can draw almost any cryptocurrency down if it suggests no up-to-date technology or solutions. This is what might happen to the BCH.

Hardforks happen in the network roughly every six months. They happen when there is no agreement in the crypto society about the key ways of development. If so, the network splits. For example, in 2018, a hardfork resulted in the appearance of the Bitcoin CV, then the Bitcoin Cash Node. Not that people were agitated by the coins; they have their fans but have little weight in the market.

Recently, the PayPal payment system has added the Bitcoin Cash to the list of available coins alongside the BTC, ETH, and LTC. This means that one of the cryptocurrencies that appear as the result of the hardfork may acquire the support of the community, which will later affect its price. 

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

 

Disclaimer

Any predictions contained herein are based on the author's particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

 

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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