Bitcoin Cash price analysis: BCH/USD sliding down with the market as Bitmain acquires Bitcoin Cash wallet provider

Bitcoin Cash (BCH) is changing hands at $514, off the Asian high of $530. The coin is sliding in sync with overall bearish momentum on the cryptocurrency market. BCH/USD is down 4% on day-on-day basis Bitcoin Cash has a market value of $9.0B and an average daily trading volume $535 which is in line with mid-term average figures.  

What’s going on

A large manufacturer of cryptocurrency mining equipment Bitmain acquired  Telescope, an open-source Bitcoin Cash wallet, CoinDesk reports.

The wallet was launched a year ago and a browser-based application. Currently, it is supported by Google Chrome and Mozilla Firefox, but the team has plans to expand the list of browsers and supported platforms after the acquisition. The wallet enables instant BCH transactions and provides a high level of security for an online wallet as transactions are signed by a user’s browser directly with keys stored within a browser extension.

“Browser-embedded cryptocurrency wallets are a promising technology. The Telescope development team is doing some very interesting work and we look forward to working together with them on the Telescope project and future bitcoin cash projects,” Nishant Sharma, head of international press relations at Bitmain commented.

Bitmain is a large holder of Bitcoin Cash. The news that the company plans IPO triggered a strong BCH price rally.

Bitcoin Cash technical picture 

From the technical point of view, the first local support is seen at $500 (psychological level and SMA200, 4-hour chart). It is closely followed by $488 (SMA100, 4-hour) and $423 handle (September 25 low).

On the upside, BCH/USD will need to climb above $534 handle created by a confluence of SMA100 and SMA50, 1-hour. Once above the recovery may be extended towards $580 and $590 (September 27 high).

BCH/USD, 4-hour chart