Bitcoin Cash Market Update: BCH/USD 6% dive ravages $400 support
|- Bitcoin Cash leads the bearish ‘gang’ as the price struggles to stay above $360.
- A new miner tax proposal could see BCH miners part with 5% of their earnings to support network development.
Bitcoin Cash is leading the sloth of bears in the cryptocurrency market. The losses that started on Saturday continued to dominate both the Asian session and the European sessions on Monday. BCH/USD is trading at $385 following a 6.72% loss on the day. From an opening value of $411, BCH has posted intraday lows of $367. Little action was made to the north, with $416 being the highest level reached on Monday.
The various support areas that have been shuttered including $450, the ascending trendline and $400. A shallow recovery from the lows posted today seems to be struggling to sustain gains towards $400. Besides, BCH's ability to defend the support at the 61.8% Fibonacci level of the last drop from $515 to $172.92, will determine how fast the BCH can make its way above $400.
Meanwhile, technical indicators signal that the path of least resistance remain to the downside. The RSI is diving deeper towards the oversold while the bearish divergence with the MACD cements the sellers’ position in the market. A confluence formed by the 50% Fibo and the 50-day SMA around $350 will offer additional support if the losses push further.
BCH/USD daily chart
Bitcoin Cash development tax cut to 5%
A Bitcoin ABC developer Amaury Séchet has come up with an updated version of the miner Infrastructure Funding Plan (IFP). The original version was proposed by BTC.TOP founder Jiang Zhuoer, however, a lot of discussion within the community saw its validation postponed to allow for review. In the event Amaury’s proposal is supported, it will come into effect after the release of the 0.21.0 version of ABC software around May 15. The new proposal suggests that a 5% development tax be charged on all the miners within the network. It is reduction from the original 12.5%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.