Bitcoin Cash (BCH) Meltdown, down 17.8% Losing $700 million in 3 Days

Dalmas Ngetich

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin Cash free fall, down 17.8 percent
Hash rate, median transactional value and public addresses dismal

Roger Ver is of the view that BCH is a medium of exchange coin, and Bitcoin supporters are lost. However, other statistics reveal that Bitcoin Cash activity is low with a median transactional value of less than one cent. At the same time, the hash rate is flat with dwindling public addresses.

Bitcoin Cash Price Analysis

Fundamentals

On one end, Roger Ver, the main protagonist behind Bitcoin Cash, maintains that BCH supporters never left Bitcoin. He insists that it is BTC ardent fans that are deviating from Bitcoin’s road map of being “cash” or a medium of exchange system. While it is true that Bitcoin is first of all a medium of exchange, allowing for trustless movement of funds across the globe, the expectations of future prices promotes the coin as a store of value.

Then again, because of its security, Bitcoin is a settlement layer that is competing with the legacy system with high throughput. Because of this, metrics show that Bitcoin is indeed superior to Bitcoin Cash despite Ver’s assertions.

Moreover, the median transactional value is dipping, standing at $0.0096, that is, one cent. Besides, the number of user activity—gauged by the number of public addresses– less than 50 percent of Litecoin and less than 33 percent of Dogecoin. A look at hash rates, the network is increasingly susceptible to a majority attack with 2.44 EH/s.

Candlestick Arrangement

Price wise and Bitcoin Cash (BCH) is back to red, down 17.8 percent and 10.5 percent in the last week and day. Still, we are net bullish from a top-down approach.

Notice that from the weekly chart, there was an over-extension of after week ending Apr-14 when a whole bear closed above the upper BB. Typical of overvaluation, the movement towards equilibrium is forcing liquidation towards the middle BB. Even so, we expect prices to stabilize and that means support anywhere between $170 and $200.

Although prices may slump to $170, retesting the breakout levels in a classic retest, BCH are oscillating within the week ending Apr-6 high low. From an effort versus results point of view, this is bullish with loading opportunities available anywhere between Apr-2 lows and the 78.6 percent Fibonacci retracement levels of Apr-2-3 range.

Technical Indicators

Bear momentum is high as bars band along the lower BB. Nonetheless, the fact that prices are correcting means our initial stand is bullish thanks to resilient buyers and sellers who are yet to reverse gains of Apr-2-3. At the moment, any form of support within the $170–$200 zone must be with high volumes above averages of 36k or even 462k of Apr-3.

Chart courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.