Bitcoin Cash community experiences turmoil, BCH/USD consolidates below $300

The Bitcoin Cash (BCH) community appears to be at crossroads about the decision to change the asset’s difficulty adjustment algorithm. Chris Pacia, a volunteer BCH developer, took to Twitter to say that many people walked out of a recent developer meeting as they did not reach a consensus over whether or not to make adjustments to Bitcoin Cash’s difficulty algorithm. 

Vitalik Buterin, the co-founder of Ethereum, tweeted in response, saying that he doesn’t understand why BCH people “care so much” given “your algo is fine as is.” A few reports suggest that the increasing tension over the difficulty algorithm may result in yet another BCH chain split. Australian BCH proponent Hayden Otto tweeted: 

According to a Cointelegraph report, Otto said that his tweet was meant as a joke to “troll” those opposing BCH’s core “Bitcoin ABC” developers. He called the community disagreement a “trivial matter.” Otto believes that a select few people have made it a priority to change the difficulty adjustment algorithm (DAA). These are the people who “want to stop miners gaming the current DAA by switching large amounts [of] hashrate to and from BCH — which results in inconsistent block mining times.” 

Despite the disagreement in the community, Otto said that a BCHN chain split is unlikely, stating that miners do not widely adopt the BCHN software and hence, its supporters “will not have a majority vote to get their desired changes through on the upgrade date.” 

They are now relying on ‘proof of social media’ tactics in an attempt to persuade miners and businesses who run ABC to capitulate and swap over to the BCHN software.

Right now it's all just posturing online, but when it comes to the upgrade date, the BCHN supporters are not expected to follow through on anything. They will be a minority chain and another split would be catastrophic for anyone following the minority chain.

BCH/USD daily chart

BCH/USD took control of the market, tracking down the price form $293.91 to $291.70. It looks like the price is currently consolidating below the $300-level. The MACD shows that the market momentum is going to reverse from bullish to bearish. 

There are two strong resistance levels at $301.20 and $319.72. On the downside, healthy support exists at $282.25, $273.75 (SMA 200), $257.55 (SMA 20), $248.30 and $241.73 (SMA 50).