Bitcoin Cash (BCH) price in recovery mode after undergoing Hard Fork

Bitcoin Cash (BCH) price in recovery mode after undergoing Hard Fork
Written by:
Michael Harris
November 30, 2020
  • Bitcoin Cash Node (BCHN) likely to become the leading software of the BCH network
  • Before Bitcoin Cash split again, about 90% of miners were backing BCHN
  • BCH price printed a 9-month high at $373.00 on November 24 before a sharp correction occured

Bitcoin Cash (BCH) price is trading over 5% higher to open a new week after crashing over 35% in the past week. The blockchain has once again split into two new platforms. 

Fundamental analysis: BCHN to win

Bitcoin Cash Node (BCHN) might become the leading software of the BCH network after the latest hard fork. Crypto exchange Binance has mined the last BCH “common block”, while the first block that split the blockchain was mined by AntPool. After that, Bitcoin Cash Node has acquired the majority of hashpower as miners have mined a number of consecutive blocks. 

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Before Bitcoin Cash split again, about 90% of miners were backing BCHN. 

Amaury Sechet and his team of developers suggested an update on the network, featuring a new controversial “Coinbase Rule”, under which Sechet and his group, BCH ABC, take 8% of mined BCH as a way of funding protocol development. 

The update faced a backlash from another group from the Bitcoin Cash community, that’s known as Bitcoin Cash Node, who eliminated this “miner tax” from the source code. As a result, Bitcoin Cash has undergone another fork as the two groups couldn’t reach an agreement. 

In case BCH ABC doesn’t receive enough hashpower to maintain the blockchain, it means that the ABC blockchain can theoretically disappear. Furthermore, the majority of common cryptocurrency exchanges have voiced their support for BCHN. 

Technical analysis: Recovery mode in play

Bitcoin Cash price printed a 9-month high at $373.00 on November 24 before a sharp correction took place to erase more than 35% of the coin’s value. As seen in the chart below, a strong push lower was capped by $251, which hosts a confluence of two moving average lines. 

BCH/USD daily chart (TradingView)

A rebound has started on Thursday to push the price action towards the $300 mark. Today seems to be the third consecutive day of gains as BCH buyers work their way towards the next resistance line at $325.

Summary

Bitcoin Cash has undergone a hard fork once again as the two groups of developers, BCH ABC and BCHN, couldn’t have come to an agreement over the cryptocurrency’s future. The price action crashed just before the hard fork while the buyers now work in a recovery mode.