Bitcoin Cash Market Update: BCH fork is inevitable as Bitcoin ABC team separates from the project
|- Bitcoin Cash will be forked on November 15, BCH holders will receive airdrop of new coins.
- BCH/USD may retest daily SMA50 before another attempt to move above $300.
The author of the first-ever Bitcoin fork, Rorger Ver, confirmed that the Bitcoin ABC team would separate from BCH and create a separate project.
Bitcoin ABC and @deadalnix have announced that they are forking away from #BitcoinCash on Nov 15th. We wish them good luck with their new coin and thank them for the free airdrop to all BCH holders, he wrote on Twitter.
In recent weeks the tensions in the Bitcoin Cash have been escalating rapidly as Bitcoin ABC development team adopted Jonathan Toomim’s ASERT Difficulty Adjustment Algorithm (DAA), and integrated Infrastructure Funding Plan (IFP), which was opposed by many community members.
Considering that many big players, including early BCH adopters and developers, do not support IFP integration, Bitcoin ABC decided to part ways with the project and go their own way. The fork is scheduled for November 15. also, all BCH holders will receive airdrops.
The development may be supportive to BCH in the short run as traders tend to hoard the asset ahead of the fork in hopes to receive free coins.
BCH/USD: The technical picture
At the time of writing, BCH/USD is changing hands at $284.40, down nearly 3% since the start of the day. Despite the retreat, it is still in a green zone on a day-to-day basis (+1.16%) after a strong rally on Monday, September 1.
On a daily chart, the RIS has reversed to the downside, which means, BCH may extend the decline to the upward-looking SMA50 at $276.80, where fresh buying interest will help to slow down the correction. If it is broken, the sell-off may continue towards the recent low of $254.45, reinforced by a combination of the daily SMA100 and SMA200 located on approach.
On the upside, a sustainable move above $300.00 is needed for the upside to gain traction. The next resistance is created by the upper line of the daily Bollinger Band at $315 and the recent recovery high at $325.
BCH/USD daily chart
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