Bitcoin Cash analysis: BCH/USD calms down at $1,634, waiting for block size update
- Resistance at $1,800 proves to be too hard for BCH bulls so far.
- Bitcoin Cash Dev team is getting ready for a software update.
Bitcoin Cash spiked to $1,834 on Sunday, but the upside proved to be unsustainable as the coin retreated to $1,634 by the time of writing. BCH is still over 140% higher on a monthly basis, but the bullish momentum seems to be fading away at critical $1,800 level.
Bitcoin Cash is getting ready for a massive update that will enhance the network capacity with 32MB block size. The Bitcoin Cash community is excited about the update, though critics are skeptical, saying that BCH network is not overloaded and the increased block size is somewhat meaningless at this stage.
"In 7 days, Bitcoin Cash will upgrade to allow for 32MB blocks, leaving plenty of room for low-fee transactions and unbounded innovation. When the 1MB block size limit was introduced in 2010, it was two orders of magnitude (1000x) greater than the actual usage of the network," - the Twitter-published statement reads
Bitcoin Cash technical picture
The fourth largest cryptocurrency by market value stays above 100-SMA (hourly chart) at $1,637, which creates a local support area. Once it is broken, the downside may be extended towards $,600 and to $1.520 (200-SMA). On the upside, the line of resistance is seen at $1,700, followed by $1,800.
Author
Tanya Abrosimova
Independent Analyst
