BCH Price Resumes Downward Consolidation as BitPay Backs Bitcoin ABC in Upcoming Hard Fork
After an explosive rally, bitcoin cash has entered a period of consolidation ahead of a highly anticipated hard fork in just four days. On Saturday, crypto payment processor BitPay announced it will back the primary upgrade of Bitcoin Cash, joining a growing list of entities that are sticking with the so-called “Satoshi Vision” chain.
After a positive start to the weekend, bitcoin cash reversed course on Sunday, falling 5.1% to $530. With the decline, the digital currency is down nearly $120 from last week’s swing high.
Trade volumes have declined sharply since Wednesday, when daily turnover reached $1.2 billion on virtual exchanges. As of Sunday, BCH trade volumes had fallen to $678 million, according to CoinMarketCap. BitForex, OKEx and DigiFinex are the largest markets for BCH trades, based on daily turnover.
The 4-hour chart shows a large drop in momentum for the BCH/USD trade, with the relative strength index (RSI) approaching oversold territory. The MACD is equally bearish.
BCH also traded firmly lower against bitcoin. At last check, bitcoin cash was worth 0.08286396 BTC, down 4% compared with Saturday.
At current values, bitcoin cash has a total market capitalization of $9.2 billion, placing it fourth among active cryptocurrencies. At the height of the most recent value, bitcoin cash’ market capitalization rose above $11 billion.
BitPay Will Not Implement Bitcoin SV
BitPay, one of the world’s leading crypto processing companies, announced Saturday it will support the Bitcoin ABC implementation of the upcoming bitcoin cash hard fork. In doing so, the payment processor said it has no plans to implement Bitcoin SV, the hard fork protocol promoted by Craig Steven Wright, CoinGeek and Calvin Ayre, a well-known casino mogul.
“BitPay has not made any plans to migrate from the Bitcoin ABC implementation of Bitcoin Cash to a different implementation,” the company said in a blog post. “BitPay will closely monitor network conditions and the chains resulting from a chain split. We will send you another notification when we determine that payment risks have passed.”
The payment processor has recommended that users avoid sending transactions leading up to the hard fork, which is scheduled to take place Nov. 15.
As Hacked recently reported, the Bitcoin SV implementation promoted by Wright and others is being rejected by the BCH community. Bitmain founder Jihan Wu has also confirmed that BCH developers are “working together” to remove Wright from the community.
In addition to BitPay, market heavyweights Coinbase and Binance have also announced support for Bitcoin ABC. Individual miners are likely to follow suit should outright support for one version of the hard fork continue to build.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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