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- Bitcoin Cash’s price has fallen 6% in the past four days since its next hard fork.
- Bitcoin Cash will undergo a protocol update on Sunday November 15, 2020, which will result in a hard fork.
The price of Bitcoin Cash has been declining for the past few days, with BCH currently trading in the $ 257 zone, down from a recent high of $ 278 ahead of an upcoming network hard fork to be held next Sunday, November 15. Currently, Bitcoin Cash has two competing protocols, BCHN and Bitcoin ABC. However, BCHN is heavily favored, with 85% of block miners. A new infrastructure funding proposal has sparked some controversy for BCH, resulting in an impending hard fork.
On November 15, the two camps will roll out their versions of the Proof of Work Protocol update, thus likely resulting in two separate chains, where the chain with the most mining power will ultimately win with exchanges and miners.
It appears that the most popular exchanges in the world such as Binance, Coinbase or Kraken will support BCHN after a hard fork. Some exchanges may also list the other version of the hard fork depending on specific conditions.
Can BCH profit from the next fork?
There has been a huge spike in the influx of BCH coins into trading over the past week. So far, this doesn’t seem to have affected the price of Bitcoin Cash too much as it continues to trade at $ 257, but the coin flow may not be a bad indicator.
While a spike in the inflow of coins to trade is generally seen as a negative metric for bulls, in this specific scenario it could be a positive factor. Many investors may want the upcoming forked coins, which means increased buying pressure. Something similar happened to Bitcoin before the BCH hard fork in August 2017, when the flagship cryptocurrency saw a 40% price increase in the following weeks.
BCH / USD daily chart
Technically speaking, the price of Bitcoin Cash appears to have ranged between $ 240 and $ 275 for the past month. Currently, the 100-SMA serves as a strong support level at $ 255. A rebound from this level can push the price of Bitcoin Cash towards the $ 275 line above.
BCH IOMAP chart
According to the In / Out of the Money Around Price (IOMAP) chart, the most vigorous resistance area lies between $ 259 and $ 266 with 1.69 million BCH bought. A breakout from this point can push the Bitcoin Cash price to $ 300.
On the other hand, slipping below the 100-SMA to $ 255 would be a notable bearish sign with two initial price targets of $ 245 and $ 240. A breakdown from the below $ 240 line could push Bitcoin Cash’s price to $ 215. .
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