Bitcoin Cash Takes Off Before the May 15 Fork Towards $400 BCH/USD Price Point
The crypto market is living a honeymoon with strong rises of the main cryptocurrencies protagonists of the ecosystem, with Bitcoin at the head marking the route to follow for the rest of its followers.
In the last minutes at the time of writing, 10: 38 UTC + 10 (AEST), Bitcoin has a spread from -1.67% to a maximum of + 4.75%, passing the price from $ 7790 to $ 8029, with a dominance of 58.7% on the general market and a purchase pressure of 55% on the sale of 45%.
As a result, the rest of the altcoins have positioned themselves and Bitcoin Cash, which is close to a fork in the following hours, is no exception.
The first fork of BTC is quoting at the time of writing at $ 386.44 USD with a positive change of -0.58%, which has led it to remain in fourth place with a stock market capitalization that is already fast approaching the $ 7 trillion dollars.
In the short term, the outlook for BCH is quite encouraging, with a strong upward channel that started on May 11 and that has already generated values above $ 400, with a cumulative weekly profit of more than 32%.
BCH has support levels at $ 295, the basis of its rally up and a maximum of resistance at $ 411.26 that it managed to reach a few hours ago.
The Aroon Uptrend indicator is already showing signs of being bullish, if as it reads, bullish despite the fact that BCH has high levels, so it is presumed that a new upward rally is coming up for the altcoin.
Chaikin Money Flow, which is above the limit of capital outflow, is slowly changing to higher levels, which evidences the entry of capital into the BCH ecosystem and this will undoubtedly make it even more bullish.
As if that were not enough, the 9-day EMA, which is the time limit for short-term investment horizons for cryptocurrencies, has been broken with a pair of green candles, which is undoubtedly a sign of entry to obtain good results.
For the medium term, we could not expect another scenario different from the previous one. BCH has managed to break a bearish trend after the spin ball generated in the past month and has relied on its BTC pair to move towards maximum levels at the end of last year, before the fork to which it was exposed.
Its key support is at levels of $ 228 and its resistance in the medium-long term is at $ 573.11.
The Parabolic SAR indicator is quite bullish since the end of last month, and apparently it will remain that way for the rest of May.
The 30-day moving average is BCH support at this time and it is quite distant from reaching it again.
To finish, the RSI is at the time of overbought, undoubtedly synonymous with the upward trend that lives for a good time the altcoin of Roger Ver. As we can see, BCH is quite optimistic before the implementation of its next fork this May 15 in order to improve its security in the protocol and improve its scalability.
Improvements in the Fork.
Today, May 15, Bitcoin Cash will carry out an update of its protocol introducing several interesting novelties, such as the Schnorr signature scheme which replaces the current ECDSA signature scheme, which will allow to reduce the space used by the blocks in the blockchain thanks to the concept of added signatures.
With this new modality, transactions will be more private and will further reduce transaction costs as well as improve the performance of the Bitcoin Cash network.
The bifurcation will take place in block 1557921600, at approximately 2pm CET. It is worth mentioning that unlike the November 2018 fork, no new currency will be given.
Also, BCH developers have decided that Schnorr's signatures are optional while maintaining support for classic ECDSAs.
The size of the block with the new scheme will be 6 bytes compared to the 70 generated by the ECDSA scheme. As a second improvement, the Segwit recovery exemption is also provided so that the BCHs blocked in these addresses can be unblocked.
In addition there will be improvements such as: hidden payment channels such as classic payments, atomic swaps disguised as normal payments, LN-style payment channels if desired, and secure chains of unconfirmed transactions involving several parties in a second layer.
For now, BCH holders should update their available clutch wallets on the official page, and wait if BCH will finally take off at projected levels with these improvements.