The 5th criptomoneda by market capitalisation is shown weak, with a path of least resistance to the floor. The price of Bitcoin Cash was negatively affected after celebrated its first Halving. Why he fell with an event that is expected to be positive? What will continue to fall BCH? Then we perform an analysis of your current situation.
Analysis of the price of Bitcoin Cash
The price of Bitcoin Cash is consolidated into approximately USD 232, achieved after falling 17% since its peak of April of us $ 280. The outlook for this criptomoneda is the more negative it looks to the short-term. From the technical analysis we see that the easiest path to follow is the bassist. To begin this analysis, let’s look at the fundamental aspect, this being the main cause of the feeling of the bear market of Bitcoin Cash.
Halving of Bitcoin Cash brings problems
If you are a follower of the ecosystem, crypto, you’re well aware of what that means this protocol, as I explain briefly. The Halving is a part of the executable code of some cryptocurrencies. In the case of Bitcoin and its forks, runs approximately every 4 years, with the aim of reducing by half both the number of new coins per block as the reward to the miners for the validation of the same. This generates an immediate decrease of the offer, which would be positive for the price of a criptomoneda with growing demand. But, if the miners are challenged by work in the network, drop out, and this is just what has happened with BCH. The price of Bitcoin Cash was not sufficiently attractive to the miners, because for some it doesn’t even cover operating expenses, resulting in losses. As a result of this, an imminent departure of the computing power of the network of BCH occurred, by reducing its hash rate of almost 4 EH/less than 1 EH/s in a matter of a few hours. What generated the news story about the price of Bitcoin Cash is consolidated in numbers not so good. Currently, the hash rate of Bitcoin Cash is stable near 2-EH/s. The matter is that the price has not increased, even decreased even more. This situation will lead to more output of computing power to areas that have more green, where mining is more profitable. Hash rate of Bitcoin Cash
As I said at the start of this article, the price chart of Bitcoin Cash displayed higher odds for a new downturn. A area offer nearby, close to USD 245 has led to a recent maximum of the lowest, this being the main feature of a bearish trend. The previous succession bullish view on the daily chart was already broken. In this way, the movements most likely are in favor of the new trend. Yesterday closed a bull candle with good body. However, we would still see a movement above the us $ 245 to expect a longer recovery, with immediate resistance at USD 280. The most likely scenario is the break of the support closest to it, will resume the bearish sentiment. This support is in USD 214. To occur, there seems to be no area of demand relevant, up to USD 150, reached during the collapse occurred in mid-march. Technical analysis of the price of Bitcoin Cash, daily chart All of our publications are of an informative nature and in no case should be decided with advice of investment.