Bitcoin Cash is falling for the fourth day in a row. In Thursday, August 2, Bitcoin Cash is trading at $749.70 and is heading down by 2.5%, reports Dmitriy Gurkovskiy, Chief Analyst at Roboforex.
The cryptocurrency has successfully rehabilitated itself from the Wednesday minimums, but the bears are unlikely to stop here. The rehabilitation impulse stopped at $770.00 and afterwards Bitcoin Cash did not have any more strength to go further.
The closest important resistance is at $776.00, and, in case the crypto passes it successfully, the buyers will head to $800.00. At the same time, in case of the breakout at $735.00, the more persistent bears will lead the crypto to $700.00, which will open the way for it to $650.00-660.00.
Thus, the key resistance is at $776.00, and the important support is at $735.00. On D1, the MACD has nearly reached the positives when it started to go down again, issuing a sell signal. The Stochastic is going down in the positives, thus confirming the sell signal.
On these days the cryptocurrency world is drawing a conclusion on the results of the circulation of Bitcoin Cash for the past year – it was exactly one year ago that this quite controversial and very important fork of Bitcoin appeared on the Market. The сoncept of Bitcoin Cash has not, broadly speaking, proved its value yet – it was created as cash, as an original bitcoin. I.e. it should be used for payments and not only for investments. But one year is a very little time for the cryptocurrency to reveal all its perspectives. Considering that Bitcoin itself is experiencing problems with scaling which with time only worsen, Bitcoin has space for development.
During the year, Bitcoin Cash experienced hard forks which were directed at the performance improvement and algorithms optimization – first of all, at the optimization of complexity algorithm. This has solved the major problems with the transactions and with the approval of the transactions. This spring, the hard fork of Bitcoin Cash network contributed to the increase of the block to 32 Mb. Alongside this, the codes, increasing the functionality of smart contracts have become available.
For the time being, the hard forks will continue. In particular, a new network update is planned for the coming autumn – it may happen in November.
By its traded value, Bitcoin Cash now occupies the fifth place, being outplayed by EOS, for example. Most part of Bitcoin Cash buyers are located in Asia and the main cryptocurrency trading activity happens exactly on the Asian exchange markets. Bitcoin Cash has not yet become digital cash and the demand for this cryptocurrency as a transaction mechanism is not very high. For the coming year the risk factor for Bitcoin Cash is the split of opinions between the main developers, which won’t allow to bring to the protocol something fundamentally new.
Disclaimer: Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.