Bitcoin Cash Price Technical Analysis – BCH/USD Holding on to Gains

Key Points

  • Bitcoin cash price recovered well from the $1340 low to well above $1700 against the US Dollar.
  • However, this week’s highlighted crucial bearish trend line with current resistance at $1900 is preventing gains on the hourly chart of BCH/USD (data feed from Kraken).
  • The pair needs to overcome selling pressure around the $1900 and $2000 levels to gain momentum.

Bitcoin cash price has moved into the positive zone above $1700 against the US Dollar. BCH/USD now has to move past $2000 for more gains.

Bitcoin Cash Price Upside Hurdle

Yesterday, we saw the start of a decent recovery in bitcoin cash price from the $1340 low against the US Dollar. The price moved higher and succeeded in breaking the $1700 resistance. There was also a break above the 38.2% Fib retracement level of the last fall from the $2405.2 high to $1340.9 low. The current price action is positive above the $1700 level, but BCH is facing a major hurdle on the upside.

At the moment, the 50% Fib retracement level of the last fall from the $2405.2 high to $1340.9 low at $1870 is acting as a major hurdle. More importantly, this week’s highlighted crucial bearish trend line with current resistance at $1900 is preventing gains on the hourly chart of BCH/USD. Therefore, there are two major resistance for more gains – $1900 and $2000. The pair has to move past $1900 and close above $2000 to gain further upside momentum.

Bitcoin Cash Price Technical Analysis BCH USD

Around the mentioned $2000, the price faces the 100 hourly simple moving average. Moreover, the 61.8% Fib retracement level of the last fall from the $2405.2 high to $1340.9 low is at $1997. On the downside, an initial support is at $1700 followed by the $1500 level.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is just above the 50 level.

Major Support Level – $1500

Major Resistance Level – $2000

 

Charts courtesy – Trading View, Kraken

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Key Points

  • Bitcoin cash price started a recovery after trading as low as $1340 against the US Dollar.
  • This week’s highlighted major bearish trend line with current resistance at $2000 is still in place on the hourly chart of BCH/USD (data feed from Kraken).
  • The pair may correct further in the near term, but it faces a major challenge near $2000.

Bitcoin cash price is recovering from the $1340 swing low against the US Dollar. BCH/USD is still below a major resistance area at $2000.

Bitcoin Cash Price Recovery

During the past three days, we saw a major decline in bitcoin cash price below the $2000 level against the US Dollar. The price fell sharply and it even broke the $1500 support. It traded close to the $1300 level and formed a low at $1340. Later, a decent upside recovery was initiated and the price moved above the $1500 level. There was a close above the 23.6% Fib retracement level of the last decline from the $2400 high to $1340 low.

It is a positive sign, but the price still faces many resistances on the upside around $2000. More importantly, this week’s highlighted major bearish trend line with current resistance at $2000 is still in place on the hourly chart of BCH/USD. The pair may correct further. But it won’t be easy for buyers to break the $2000 level. At the moment, the price is trading near the 50% Fib retracement level of the last decline from the $2400 high to $1340 low at $1870.

Bitcoin Cash Price Technical Analysis BCH USD

A push above $1870 will most likely call for a test of the $2000 resistance. On the downside, supports are seen near the $1600 and $1500 levels.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is now back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD has moved above the 50 level.

Major Support Level – $1600

Major Resistance Level – $2000

 

Charts courtesy – Trading View, Kraken

Key Points

  • Bitcoin cash price faced heavy selling pressure and it declined toward $1500 against the US Dollar.
  • Yesterday’s highlighted major bearish trend line with resistance at $2100 is intact on the hourly chart of BCH/USD (data feed from Kraken).
  • The pair may correct a few points, but it is likely to face resistances near $2000 and $2100.

Bitcoin cash price declined sharply toward $1500 against the US Dollar. BCH/USD is now in a bearish trend as long as it is below $2100.

Bitcoin Cash Price Downtrend

There was a start of a fresh downside wave in bitcoin cash price from the $2600 swing high against the US Dollar. The price crashed and declined below a few important support levels such as $2200 and $2100. The decline was such that the price even declined below the $1600 support. It traded close to the $1500 level and formed a low at $1501.7. Later, an upside correction was initiated and the price moved above the 23.6% Fib retracement level of the last drop from the $2403 high to $1501 low.

However, there are many resistances on the upside around the $2000 level. Above $2000, yesterday’s highlighted major bearish trend line with resistance at $2100 is intact on the hourly chart of BCH/USD. Moreover, the 50% Fib retracement level of the last drop from the $2403 high to $1501 low is at $1952 to prevent upsides. Therefore, it seems like there are many barriers for buyers around the $1950 and $2100 levels. As long as the price is below the $2100 level, it remains in a downtrend.

Bitcoin Cash Price Technical Analysis BCH USD

On the downside, an initial support is around $1600, followed by the last swing low of $1501. A break below $1501 could increase a lot of pressure for a move toward $1200.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is moving in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently well below the 50 level.

Major Support Level – $1500

Major Resistance Level – $2100

 

Charts courtesy – Trading View, Kraken

All cryptocurrencies need to keep evolving at any given time. On the technical front, that is often easier said than done. Especially newer currencies often have a laundry list of features to implement in the near future. For Bitcoin Cash, things have been advancing rather nicely these past few months. The project now has its own Bitcoinj development branch as well. This is a big development for this alternative version of Bitcoin.

For those unaware of what Bitcoinj does, allow us to explain. It is a project best known for being a cornerstone of the Bitcoin ecosystem. In its original state, it was the second Bitcoin implementation and the first to target SPV light wallet functionality. Not everyone wants to run a desktop client or full node on their machine at all times. Moreover, SPV functionality is very important when it comes to mobile cryptocurrency wallets.Most Android wallets make use of Bitcoinj as we speak.

Bitcoinj Cash is Open for Business

With Bitcoinj Cash, the goal is to unify all forks for BCH. More specifically, a lot of forked versions of this SPV implementation exist. Unifying them all under one banner will make it easier for everyone involved. Moreover, the team hopes to engage more community members to contribute to this particular branch of development. No one can deny Bitcoin Cash has a strong and vibrant community right now. Solutions like these will only improve the overall ecosystem.

As a result of this new branch, we will see more mobile wallets support Bitcoinj Cash. Some might even switch over from BTC to BCH full-time. HashEngineering’s Android wallet is switching over to Bitcoinj Cash in the near future. Moreover, the Lighthouse project – which has all but been forgotten – may be revived thanks to this new implementation. Crowdfunding through Bitcoin has always been a great concept. Unfortunately, it also became impossible due to mounting fees and slow transactions. With BCH, this option becomes viable again.

It is also important to note this new development branch will not just focus on SPV wallets. Instead, the team wants to expand upon its functionality, although no further details were provided at this point. It all depends on how the community and interested developers respond to this new development. With enough support, Bitcoin Cash may look very different from today. That would be a good sign, mind you, as more functionality can only be considered to be a good thing. Especially when it comes to business-friendly services, there’s always room for future improvements.

Key Points

  • Bitcoin cash price failed to stay above the $2400 support area and moved down against the US Dollar.
  • There is a major bearish trend line forming with resistance at $2400 on the hourly chart of BCH/USD (data feed from Kraken).
  • The pair is likely to continue its decline towards $2100 since it is now well below the 100 hourly simple moving average.

Bitcoin cash price is moving lower sharply from $2550 against the US Dollar. BCH/USD could extend declines and may even test the $2100 level.

Bitcoin Cash Price Resistance

Yesterday, we saw a recovery wave in bitcoin cash price around the $2500 level against the US Dollar. However, the price failed to stay above the $2500 support since the $2550 level acted as a major resistance. As a result, there was a downside reaction from $2550. The price declined and broke a few important support levels including $2460 and $2400.

There was a break below the 61.8% Fib retracement level of the last upside wave from the $1997 low to $2750 high. BCH is currently trading just above the $2200 level and it seems like it may extend declines. The next major support is around the $2100 level. An intermediate support is around the 76.4% Fib retracement level of the last upside wave from the $1997 low to $2750 high. Below the mentioned $2100, the price is likely to retest the $2000 support and the $1997 swing low.

Bitcoin Cash Price Technical Analysis BCH USD

On the upside, there is a major bearish trend line forming with resistance at $2400 on the hourly chart of BCH/USD. The trend line resistance and the $2350 hurdle are likely to prevent gains in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently heading towards the oversold levels.

Major Support Level – $2100

Major Resistance Level – $2400

 

Charts courtesy – Trading View, Kraken

It has become evident good things are happening in the Bitcoin Cash ecosystem. We see more transactions than ever before. Although this may be s spam attack, the network handles things relatively well. However, Antpool noticed now is a good time to start increasing their block size. Whereas the pool mined 2MB blocks, they have now shifted to twice that block size. An interesting step forward, which may indicate 8MB blocks are a possibility in the near future.

A lot has changed for Bitcoin Cash over the past few months. Some people doubted this altcoin would stick around long enough to see January 1st of 2018. Contrary to those expectations, BCH has done remarkably well. The value is holding steady, the network grows, and more services want to support BCH. Additionally, we also see an increase in network transactions over the past few weeks. This increase also brings some minor complications with it, but nothing that can’t be solved.

AntPool Increases its Bitcoin Cash Block Size

Even though BCH allows for 8MB blocks, not all mining pools use this limit to the fullest. In fact, most of them don’t, as it would tax their infrastructure. Until there is a demand for the maximum size, mining pools will maintain smaller sizes. Antpool, for example, has stuck to 2MB blocks for some time now. BTC.com was seemingly stuck on 1MB, but some of their nodes are shifting to a bigger size. It is evident something will need to change in this regard before things get out of hand.

Antpool is leading this charge as we speak. The popular mining pool increased their “default” BCH block size to 4MB. Although only a few blocks were found so far, things will get very interesting moving forward. More block capacity will eventually mean less mempool problems like this weekend. Even those problems were cleared up pretty quickly, though. The public interest in Bitcoin Cash appears to be growing at a steady rate. Right now, it is superior to Bitcoin in terms of transaction processing capacity.

It will be interesting to see if other BCH pools increase their native block size as well. It seems to be a good time to warrant such a change as we speak. Changing to 4MB as the network’s default size would certainly make things a lot easier. It’s evident Antpool may even switch to 8MB in the very near future. This recent increase appears to be a “test”. After all, the company needs to make sure their infrastructure doesn’t get clogged up due to these larger blocks. An interesting situation well worth keeping an eye on in the future.

Forcing cryptocurrencies to scale will always remain a very troublesome topic by the look of things. Bitcoin shows such issues can effectively cripple a network with relative ease. Project Terab, an open source initiative, wants to make sure Bitcoin Cash goes in a different direction. Right now, the network can accommodate blocks of up to 8MB in size. With Terab, the goal is to ensure one terabyte blocks become a possibility for the future. An interesting concept, but the bandwidth requirements shouldn’t be underestimated either.

Looking to the future is always important in the world of cryptocurrecy development. It is always better to prepare for potential issues rather than patch things up later on. The Bitcoin network has learned this lesson the hard way. After many years of bickering, the network now has a scaling solution few service providers are willing to use. Moreover, there is the Bitcoin Cash altcoin which seemingly has no scaling issues as of right now. Several initiatives are underway to further increase the BCH block size in the coming years.

Project Terab and one Terabyte Blocks

One of these scaling initiatives is known as project Terab. It’s an open source initiative focusing mainly on Bitcoin Cash‘s technical issues. More specifically, the team aims to introduce BCH blocks of one terabyte in the future. It is an astonishingly high number, but an interesting prospect nonetheless. Bringing such blocks to the network will be a rather big challenge, though. With such blocks, Terab would also allow Bitcoin Cash to process 7 million transactions per second.

It is evident these goals are very ambitious. Achieving such major milestones may not even be feasible in the long run. At the same time, in theory, nothing prevents a blockchain from scaling to such levels. The main problem is the terabyte blocks. Very few people have the infrastructure and bandwidth to process such blocks on a regular basis. Surprisingly, it seems unlikely such block sizes would be feasible for the regular Bitcoin blockchain. It seems the introduction of SegWit has made on-chain scaling a lot more difficult in terms of sheer block size increases.

Whether or not Terab will become a success, remains to be determined. The open source initiative certainly introduces some new opportunities and challenges. It will take a few years until such a block size could effectively be introduced to the network, though. Right now, the maximum size is 8MB, which isn’t even sued by most service providers and mining pools. Before we get to one terabyte, we need to experiment with 1 GB and 10 GB blocks. All of these developments are well worth keeping an eye on. It shows there are many ways to make bitcoin stronger and better in the future.

Key Points

  • Bitcoin cash price is slowly gaining upside momentum and is currently above $2500 against the US Dollar.
  • There was a break above a connecting bearish trend line with resistance at $2525 on the hourly chart of BCH/USD (data feed from Kraken).
  • The pair is currently attempting a close above $2550 and the 100 hourly simple moving average.

Bitcoin cash price is showing positive signs above $2500 against the US Dollar. BCH/USD may gain momentum and head higher toward the $2700 level.

Bitcoin Cash Price Uptrend

There was a nice recovery from the $2000 swing low in bitcoin cash price against the US Dollar. The price started an upside move and was able to trade above the 50% Fib retracement level of the last decline from the $2946 high to $2000 low. However, the upside move failed near the $2850 level. There was a failure to close above the 76.4% Fib retracement level of the last decline from the $2946 high to $2000 low.

There was a slow and steady downside initiated and the price moved below $2600. The downside move was protected by the $2500 support. At the moment, the price is moving higher and gaining pace above $2500. There was a break above a connecting bearish trend line with resistance at $2525 on the hourly chart of BCH/USD. The pair is currently attempting a close above $2550 and the 100 hourly simple moving average. Once there is a proper close above the $2550 and $2600 levels, there could be more gains.

Bitcoin Cash Price Technical Analysis BCH USD

On the downside, the $2500 level is a decent support. The next major support is around the $2450-2475 levels.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is slowly moving in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently just below the 50 level.

Major Support Level – $2450

Major Resistance Level – $2550

 

Charts courtesy – Trading View, Kraken

Network congestion is a problem most users would associate with Bitcoin or Ethereum. Both of these networks have seen their fair share of issues in this regard. Bitcoin Cash saw its transaction backlog grow quite spectacularly this morning. For several hours, someone – or a group of people – were flooding the network with very low-fee transactions. As a result, there was a minor delay in transactions, although things were well within the acceptable limits.  Why any of this is happening right now, has yet to be determined.

Bitcoin Cash has not been subject to major spam attacks as of yet. Bitcoin, on the other hand, seems to get clogged up with transactions every other week. Keeping this in mind, it’s not surprising to see so many people flock to BCH in recent weeks. This has caught the attention of whoever is responsible for the current “spam” on the BCH blockchain. More specifically, there have been a ton of new transactions to fill up the blocks rather quickly. A rather worrisome development, although things were handled relatively well.

Bitcoin Cash Handles the Business

The big question is why anyone would flood the BCH network with low-fee transactions. At a price of 1 Satoshi per byte, inflating overall fees would be rather difficult. After all, users can easily pay double that and not have their transactions delayed. Even with the higher fee, Bitcoin Cash remains a lot cheaper than BTC right now. With this cost in mind, it would cost approximately $16,000 to flood the network for an entire day. That doesn’t seem like much money, thus it is possible this is a well-orchestrated attack. For now, there is no solid evidence to back up such claims.

Unlike what one would expect, this issue has not caused many problems. The Bitcoin Cash mempool has been cleared relatively quickly and things are returning to normal. If this was an attack, it was a very weak attempt at causing permanent damage. If such an issue were to affect Bitcoin, the fees would skyrocket and transactions backlogged for 24 hours or more. Having a larger block size can be rather beneficial in this regard. It also shows how BCH is better at scaling compared to Bitcoin, at least for now.

Whether or not this is a prelude to more attacks, remains to be seen. No one will be surprised to see issues like these arise again in the future. The “fight” between BTC and BCH supporters is far from over Although it’s not exactly a turf war, hostilities are not entirely uncommon either. Attacking a network with low-fee transactions is despicable We don’t know if that is what has happened to Bitcoin Cash, though. In the end, the issues seem largely resolved, which is a positive sign.

Header image courtesy of Shutterstock

Key Points

  • Bitcoin cash price is mostly trading in a range above the $2350 support against the US Dollar.
  • There is a major contracting triangle forming with resistance at $2800 on the 4-hours chart of BCH/USD (data feed from Kraken).
  • The pair has to move either above $2800 or break the $2350 support for the next move.

Bitcoin cash price is preparing for the next break above $2800 against the US Dollar. BCH/USD has a good support on the downside at $2350.

Bitcoin Cash Price Support

There were mostly range moves in bitcoin cash price this past week above the $2350 support against the US Dollar. The price dipped on a few occasions and tested the $2300 and $2200 support levels. However, the downside move was well supported with pivot as $2350. On the upside, the price struggled to break the $2700 and $2800 resistance levels.

The last dip was strong as the price moved below the $2200 level and traded as low as $1999. Later, the price recovered sharply and moved back above the $2400 level. The upside move was decent and the price was able to close above $2500 and the 100 simple moving average (4-hours). Moreover, it is now above the 50% Fib retracement level of the last decline from the $2948 high to $1999 low. It seems like there is a major contracting triangle forming with resistance at $2800 on the 4-hours chart of BCH/USD.

Bitcoin Cash Price Weekly Analysis BCH USD

The pair may continue to trade in a range above $2350. However, it needs to break either the $2800 resistance or break $2350 for the next move. Above $2800, the price could accelerate above the $3000 level in the near term.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is slightly placed in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.

Major Support Level – $2350

Major Resistance Level – $2800

 

Charts courtesy – Trading View, Kraken