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Crypto Fail of The Week: Bitcoin Cash

  • Bitcoin Cash takes the title of fail of the week.
  • Despite the bullish run of the top cryptocurrencies, Bitcoin cash fell by 25.88% in the last 7 days.
  • The 10th most valuable crypto-currencies is facing a bearish period which sees its market cap drop to 9.84 billion

Continuing from where we left off last week, we have a new fail of the week in Bitcoin Cash (BCH). Bitcoin Cash is experiencing a poor run of form in recent times and data from the charts shows a massive 25.88% price crash.

This stands in antagonism with the general bullish trend of all the coins in the top ten by market cap. Bitcoin, Ethereum, and Binance Coin all reached new all-time highs. Polkadot and Chainlink were bullish within the last 7 days.

Terrible Times For Bitcoin Cash (BCH) Traders

Bitcoin Cash woes continue with the coin experiencing massive price corrections of nearly over 25% in the last 7 days. Falling prices and investors looking to liquidate their holdings now see the market capitalization of the Bitcoin Cash trade below the $10 billion mark.

Pegged at 9.84 billion for its market capitalization, Bitcoin Cash remains in the top ten most valuable coins by market cap below Chainlink and above Stellar.

At the time of writing, Bitcoin Cash is currently trading at $527.59 a far cry from an all-time high of $3,721 in 2017. According to the MACD tool, it predicts a bullish trend for the beleaguered coin while Stochastic RSI is optimistic of a neutral zone.

Technically, the overhead resistance should be in the region between $558 and 605.36 should BCH go up. However, if this sell-off continues, $420 would be the next support level plunging it deeper into the bearish zone.

On The Flipside

  • Binance Coin gains over 66% in the last 7 days and trades at $239.44, according to CoinMarketCap.
  • Uniswap also saw a 12.19% increase within the last 24 hours and gained an impressive 20.91% last week.

Bitcoin Cash, The Answer To Bitcoin’s Scalability Issues

Ever since Bitcoin was introduced, questions about BTC’s ability to be scaled in the event of an avalanche of transactions or mainstream acceptance. These questions gave rise to the development of Bitcoin Cash.

Bitcoin Cash attempts to solve the problem by reducing the number of data that needs to be verified in each block and making the blocks of data bigger. The effect is that it increases the speed of the transaction.

Created in 2017, Bitcoin Cash decentralized system mirrors the Bitcoin Technology but the speed of the transactions and the fact that it can be easily scalable endears it to traders and investors. Like Bitcoin, its maximum supply is pegged at 21,000,000 and currently, 17,663,306 BCH are already in circulation.

Will BCH be able to shake off this poor run and see a massive price rally in the future? Analysts are keenly observing the charts and some believe that this is merely a blip that signifies a catalyst for an even stronger price rally in 2021.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Crypto and fintech are my passion, I hope that one day when people read my articles will say nothing but nod in approval to themselves.