Bitcoin Cash is based on the same technology and is used in the same way, but it is a unique variation that is separate from the world’s first and most well-known cryptocurrency. Bitcoin Cash is often seen as a proxy for Bitcoin, the world’s largest digital asset, because BCH tends to be cheaper than BTC and also due to the fact that they are closely related, as BCH emerged after the 2017 BTC hard fork. A hard fork is a state where a crypto unit is split into two; the cryptocurrency or crypto unit is changed, resulting in an old code and a new code which are not compatible with each other.
Another example of a crypto that has done a hard fork is Ethereum, where the hard fork resulted in Ethereum and Ethereum Classic. Both Ethereum and Ethereum Classic are on different server code networks so users cannot send Ethereum to the Ethereum Classic network and vice versa.
Since Bitcoin Cash is mostly owned by speculators and retail traders, it tends to be relatively volatile. Indeed, many crypto observers compare their price movements to gold and silver. As such, when the Bitcoin price crashed last week, Bitcoin Cash still performed quite well.
During the ongoing recovery, Bitcoin Cash has outperformed BTC. Indeed, while Bitcoin has jumped by 9% in the last 24 hours, BCH has increased by over 20%. Therefore, in large part, Bitcoin Cash’s future performance will provide a benchmark for how BTC is traded. If the bulls continue to increase, BCH could supported further.
The price of Bitcoin Cash has risen again after dropping to the lowest level since March last week. BCH is trading at $702 (at time of writing), above last week’s low. The total value of all BCH in circulation has soared to over $13.9 billion.
BCHUSD, H4.
On the 4-hour chart we see that the BCH price has bounced back in recent days. However, it is premature to say the asset price has experienced a strong rebound, as the moving average is still below Kumo, and despite the expectations shown from AO forming a low high on its histogram and approaching the neutral zone, it is still in the sell zone. A break of the resistance at 865.69 would undermine the correction of the decline of 1639.16 to the 50.0% retracement level or at least temporarily touch the psychological level of 1000. As long as the minor resistance persists this week, it could stabilize the asset near 500.00.
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Ady Phangestu
Analyst – HF Indonesia
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