On November 15, at block 661,647, there was a new fork of the Bitcoin Cash chain, a hard fork that divided the network in two, one named BCHN and the other called BCHABC.
According to data from coin.dance, of the last 1,000 BCH blocks, 847 have been mined by BCHN nodes, while BCHABC has not solved any yet. These data make it more than clear to us which chain the majority has opted for.
At the time of this writing, Bitcoin Cash is trading at $ 252.82, with losses of 1.54% in the last 7 days, and gains of 1.45% in the last 24 hours.
The intention of the Bitcoin Cash hard fork
Once again, the users of the BCH network faced a war of opinions, where instead of seeking consensus, those who want to be right by force ended up isolating themselves in a blockchain in which only they wanted to remain.
The reason for the dispute, they proposed a kind of 8% tax on miners, to be stored in a fund for developers.
Proponents of the Bitcoin Cash Node assure that it is not necessary to implement this rule. They claim that development can be financed by voluntary support from the community.
It is already clear which is the winning blockchain of the dispute. The main exchanges have already spoken out about it.
Binance for its part assured that being BCHN the longest chain, it will be treated as the new chain of BCH. Other large exchanges such as Huobi, OKEx, and Kraken have also pledged to back the new fork.
It is clear that confrontations for modifications that are to be imposed by force do not generate more than discord. This undoubtedly affects the confidence and healthy development of the project.
Regardless, the price of BCH has not been too affected yet. The entire period of battle has been summarized on the chart as a period of slumber, but the price may soon be about to wake up.
Bitcoin Cash price technical analysis
In the weekly chart BCH vs USD we note how after the 2020 low reached in March, the price has remained trying not to look for new supports, which shows weakness of the bears.
In the medium term, the trend is not yet defined, since what is observed is a strong period of lateral accumulation.
A first indication that Bitcoin Cash is waking up will be when the price manages to break through an immediate resistance at $ 308.
However, the true positive signal is to break through the resistance at $ 475, which would be starting a medium-term uptrend.
Short term trend
From the daily BCH chart we see how the last 30 days have not been exciting at all, with a lateralized price between $ 276 and $ 235 approximately.
Despite this, short-term behavior has been positive, indicating that most of the odds are on the bullish side.
If resistance at $ 276 is crossed, the ground is clear to $ 295 as the first target. Higher up the next resistance is close to $ 320.
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