In A Month After Bitcoin Cash Hardfork: Present And Future Of New Networks
A month passed since Bitcoin Cash was hardforked, as a result, two independent networks – Bitcoin Cash ABC and Bitcoin SV (BSV) appeared. Deadly “hash war” started between the groups after that, and Bitcoin Cash ABC network was accepted by many of cryptocurrency exchanges as a “right” one.
Initially, Bitcoin Cash was designed in the way making hardfork to be carried out each 6 months. The changes implemented when the software is updated were determined by developers of the project with open source code. The developers and miners came to agreement regarding the update, and the main chain remained the same and just implemented the changes via the softfork.
Earlier, the community managed to adhere to the concept and all the Bitcoin Cash network updates were carried out in the form f soft fork, but this time the participants did not manage to reach a compromise.
After the network was hardforked, two independent chains with their own cryptocurrencies appeared. BCH ABC and BSV were listed by such cryptocurrency exchanges as Binance and Coinbase, however, the coin’s price became almost equal after the month of volatility and rapid changes in hash.
What Is Going On Now?
Bitcoin Cash price reached its peak in November, at the level of $621, but then dropped by 32% on November, 14th, in a day before the planned hardfork. Two new cryptocurrencies – BCH ABC and BSV entered the market and were traded on Binance exchange at $295 and $90. It is worth noting that several exchanges, including Poloniex and Bitfinex, also allowed “pre-fork” trading before implementation of update.
BCH ABC an obvious leader in terms of price during November, sometimes it was 10 times higher than BSV price. The difference between them reduced and Bitcoin SV managed to become a leader for some time on December, 6th.
The cryptocurrency market saw considerable loss of total capitalization – it lost more than $80 billion. As a result, both coins’ prices decreased considerable. Crisis also influenced Bitcoin price which fell to a new a-year-to-trade minimum of $3200.
At the moment, BCH ABC, which is traded on many exchanges having BCH ticker is traded at the level of $82, while BSV price is $77, according to CoinMarketCap data. It means that the users have not decided yet which cryptocurrency they prefer.
What Will Happen Next?
While long-term success of BCH ABC and BSV is most likely reasoned by the use and hash power, it is possible to use technical analysis to analyze their graphics so it is possible to forecast possible changes in cryptocurrency prices.
As it is obvious on the BSV/USDT graphic, it started forming a “bear’ consolidation figure on November, 26th, it is also known as a “downward triangle” which was broken on December, 16th.
Triangle’s support was broken at the level of $84 and it played host for decrease of the rate with two remarkable support levels – $74 and $54. Judging by the size of triangle, it is possible to suppose that, probably, lower level of support will be reached, although all the undervaluation conditions may slow the drop down.
BCH ABC rate graphic allows to make less conclusions because it saw a steady, almost 80% downward trend since the moment when it appeared in the market. It is hard to forecast possible increase in price due to absence of the levels of support.
It is unlikely that one of these cryptocurrencies will manage to take a foothold until capitalization of bitcoin and the market start growing.