Undoubtedly, the crypto market is fighting from an on-slaughter. Bears are baying for blood! Despite their May 15 hard fork, Bitcoin Cash isn’t finding any reprieve and so far it is down 20 percent week over week. In the last 24 hours alone, price erosion exceeds 15 percent. It might be a correction yes, but at the moment it a beautiful Picasso showing how Bitcoin Cash sellers are marauding, staking any attempts of bull pressure.
From the News
Roger Ver, the Crypto evangelist many Bitcoin Core supporters love to hate won’t stop pitching his beloved coin. He still insists that it’s a better currency and therefore a better store of value that Bitcoin Core. Now, if you have been tracking this guy for sometimes then you will realize that this is the umpteenth time he his saying so. Will repetition come to pass someday? Well, maybe, maybe not. What we know for sure is that Bitcoin Cash shall be forking once more.
However, this time since it shall be done at MTP time, there is no need to track block height. We anticipate this upgrade to take place on Tuesday, May 15 and there, the block size would be hiked to 32 MB from 8MB making it that largest ever block size increment in the world. Besides, their protocol data carrier sizes shall be increased to 220 bytes.
If you are a Bitcoin Cash full node or miner, please update, if not then you better stay on the side line and watch. Before the fork begins, full nodes should upgrade their clients to the 32 MB supporting Bitcoin ABC 0.17.1 version.
So, while speculations are rife that this upgrade shall increase Bitcoin Cash transaction throughput and fees, will this boost prices after the fork? Or, will it even be successful in the first place regardless of Bitcoin Cash staunch following in Korea and Japan? Let’s wait and see!
Bitcoin Cash (BCHUSD) Technical Analysis
Unless a miracle happen, Bitcoin Cash shall end up with a conspicuous double bar bear reversal pattern right at the middle BB, a resistance line. That’s a fact! So, despite that stochastic buy signal turning from deep the oversold territory, the general sentiment is bearish.
Bitcoin Cash prices are down 18 percent in the last 24 hours and 20 percent in the last 7 days effectively reversing week ending May 7 gains. At this rate, we shall be aiming for take profit targets at $1000 and $800. Many didn’t expect this to happen and advised by this, we shall be looking for sells in lower time frames.
Like the weekly chart, the depreciation is real but not as wholesome. Bears are stepping on the gas and the result has been that clear break below the middle BB. Inevitably, this means sellers are in charge and it means we shall be trading a bearish break out pattern.
So, building on to the bearish engulfing pattern we are seeing in the weekly chart, immediate targets is at $1200, there we might see a reaction and a bounce back to $1400 or so before bears resume their pressure with targets we mentioned earlier.