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A month has passed officially since the bitcoin cashcoin cashcoin suffered a hard fork on November 15, with the creation of two distinct networks.
They are commonly known as Bitcoin Cash ABC and Bitcoin SV. Yet in the weeks following the split in mid-November, there is still a favorite in terms of overall price.
Bitcoin money is designed in such a way that, every six months, its users must "forge" the blockchain and adopt a software update with the changes determined by the project's open source software developers.
If developers and miners reach consensus on what updates should be, the main chain remains intact and simply adopts the software update known as "soft fork".
All bitcoin money forks had returned to the "soft" category, but the circumstances were different with the last fork. This time, it was not possible to agree updates and the tension grew among the developers, so the main chain experienced a divisive fork – in other words, it was divided into two separate chains with their own cryptocurrencies.
Since the fork, both BCHABC and BSV have been traded on exchanges of public cryptocurrencies like Binance and Coinbase, but after 30 days of wild volatility and drastic fluctuations in hash power, their prices are only $ 10 apart.
Where I am now?
Bitcoin cash prices peaked at $ 621 in November, but fell 32% to $ 421 on November 14, the day before the scheduled fork. according to the CoinDesk price data.
After the split, the two cryptocurrencies of ABC crypto currencies and Bitcoin SV were launched on the market and began trading at $ 295 and $ 90 respectively on the Binance exchange.
It should be noted that multiple exchanges including Poloniex and Bitfinex have engaged in "pre-forex trading" before the fork took place.
These experimental markets involved the trading of token place holders & # 39; IOU & # 39; for BCHABC and BSV post-fork redeemable, theoretically allowing exchange users to decide among themselves which fork to support.
For most of November, BCHABC was the distinct price leader, sometimes valued up to 10 times that of its counterpart.
The difference between the two has been reduced as the month has expired, so much so that Bitcoin SV was able to obtain a short-term advantage on 6 December.
From the fork, the largest cryptocurrency market posted a significant sell-off of over $ 80 billion in terms of total capitalization. As a result, the two forks were significantly devalued.
At the time of writing, BCHABC (currently traded under the BCH ticker on many exchanges) is valued at only $ 80, while BSV is $ 70, according to CoinMarketCap, so it is clear that the public still has to choose an undisputed favorite.
On hold
While the long-term success of BCHABC and BSV will likely be dictated by usage and hash power, technical analysis can be applied to their price charts so that we can predict a more immediate direction of asset prices. .
As can be seen in the table BSV / USDT above, the price has begun to form a bearish consolidation model known as the descending triangle of November 26, which collapsed on December 16th.
The break of the support for the triangle at $ 84 opened the door to a further depreciation with only two notable levels of support nearby: $ 74 and $ 54. Based on the large size of the triangular model, it seems that the lower support level is likely to be achieved even if the oversold conditions on the relative intraday strength index (RSI) may slow down the fall.
There is less to be deduced from the BCHABC chart since it has been steadily, close to the 80 percent bearish trend since it hit the market.
In the absence of known support levels in the vicinity, it is difficult to predict where its price could possibly increase, even if the oversold conditions are evident in the charts at the highest interval of time, so sellers could take a break to allow a proper rebound .
Needless to say, it is unlikely that both cryptocurrencies as soon as bifurcated become very strong up to bitcoin and even the broader market does the same.
Revelation: The author holds BTC, AST, REQ, OMG, FUEL, 1 ° is AMP at the time of writing.
Image of forks locked by Shutterstock; TradingView charts
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