Bitcoin Cash price testing new lows towards $600: The network announces the much awaited hard fork on May 15

Bitcoin Cash price is falling within a contracting wedge as the week’s trading nears closure. The price is exploring new lows towards $600 level while the general trend in the market remains negative. Industry’s analyst Tom Lee, however, said on Thursday that the current selloff is motivated by the tax returns expected to be filed by investors before the deadline in mid-April, read more on Tom Lee.

In other news, Bitcoin Cash enthusiasts have today received communication from Bitcoin ABC that there will be a hard fork. The network will at that time adopt 32 – megabyte block sizes. The developers at Bitcoin ABC have said that the current node will be updated to 0.17.0 (latest software). Furthermore, a testnet is in the works and will be on trial in the weeks to come. Besides the 32 –megabyte – the hard fork will introduce Ethereum-like functionalities to Bitcoin Cash. The digital space will then benefit from smart contracts and representative support.

Bitcoin Cash price analysis

BCH/USD broke below the major support areas at $620 and $610 respectively. The 23.6% Fib retracement level with the last swing high of $715 and a low $602 could not hold the price during the declines. There is a growing bullish momentum close to $610; however, the retracement level will offer stiff resistance as Bitcoin Cash price corrects higher. The immediate support level is at $602, further declines could open the door below $600.

BCH/USD intraday 30’ chart