Another Hard Fork, Will Bitcoin Cash (BCH) Tank or Soar in Response?

Dalmas Ngetich

1 year ago

2 mins read

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Bitcoin Cash (BCH) up 6.8 percent
Schnorr Signatures implementation ahead of the more decentralized OG

Six months after a contentious hard fork, Bitcoin Cash developers plan to upgrade the network to include Schnorr signatures that require less space while simultaneously promoting scalability, security, and privacy. Meanwhile, Bitcoin Cash (BCH) prices are stable, up 6.8 percent in the last week.

Bitcoin Cash Price Analysis

Fundamentals

Roger Ver maintains that Bitcoin Cash (BCH) is the real “Bitcoin” and knows little about Craig Wright’s Bitcoin SV. Although Bitcoin Cash is a fork of Bitcoin, supporters claim that their big blocks make the network more scalable and therefore, there is no need for implementing layer-2, off-chain solutions like Lightning network.

Despite Roger Ver and Bitcoin Cash proposal, adoption levels are low and compared to Bitcoin or even the second most valuable network in Ethereum (ETH), Bitcoin Cash is lagging. Even so, it is popular in Japan where “Bitcoin Jesus” resides, and the Kraken acquisition of Crypto Facilities did boost trading volumes around BCH derivatives which is positive.

However, a stand out is their ability to integrate solutions that make the network more resilient and private. Planning for a hard fork on May 15, Bitcoin Cash developers will upgrade the system, replacing the Elliptic Curve Digital Signature Algorithm (ECDSA) with a new signature protocol, the Schnorr Signatures that introduce privacy while making the network faster, secure and scalable.

Unlike the ECDSA, Schnorr signatures require less space, cutting down bandwidth requirement by a massive 25 percent.

Candlestick Arrangement

At the time of press, Bitcoin Cash (BCH) is stable and up 6.8 percent in the last week. Despite the dragging effect of Bitcoin and their direct correlation, we expect BCH prices to be resilient.

Notice that BCH is within a bullish breakout pattern against the USD as the asset trade above a critical resistance level—now support, at $230. Because prices are reacting at the 61.8 percent Fibonacci retracement of the week ending Apr-7 high low, the underlying moment is intense.

Typical of Fibonacci retracements, the reaction from such level would most likely lead to a retest of previous highs. In that case, risk-off, aggressive traders should be angling for $350. After that, any clearance would see BCH retest Nov-2018 highs of $400 in a classic retest.

Any breach above $400 cancels the bear breakout of Nov-18, spurring the next wave of higher highs toward $650 or Oct 2018 highs.

Technical Indicator

Ideally, any break above $300 should be with high participation level above Apr-3 volumes—462k. That’s a tall order unless there is a fundamental spark that increases demand for BCH whose average volumes stand at 57k

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.