Bitcoin Cash Market Update: BCH/USD 6% dive ravages $400 support

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%.