Bitcoin Cash Price Analysis: Roger Ver Offered OpenNode $1.2 Million to Switch from Bitcoin and Accept BCH

  • Roger Ver attempts to lure OpenNode away from Bitcoin and switch to Bitcoin Cash.
  • BCH/USD price is moving back within a bearish trend, vulnerable to further downside.

The Bitcoin Cash price has been edging lower over the past few sessions. It is running at three consecutive days in the red. BCH/USD did see a freak rally higher on 28th December, along with the rest of the market, gaining well over 20%. Market bulls however failed to sustain the upside move, as the trend was already to the downside, as seen from the 24th December.

Roger Ver’s Offer to OpenNode

Roger Ver, a strong Bitcoin Cash advocate, reportedly sent an offer to OpenNode, a payment firm, for $1.2 million to switch away from Bitcoin to Bitcoin Cash. This being confirmed via the official Twitter account of OpenNode, which firmly declined the offer from Roger Ver.

On the back of receiving the offer, OpenNode stated that a more open financial system is only possible with Bitcoin, making it clear that they are not willing to entertain anything else.

OpenNode is a software company that is developing a payments stack for businesses. They are also working on software that makes it easy to deploy Lightning Network channels. This can then be utilized by retailers and the general public.

Roger Ver Does His Homework on the Lightning Network

Recently, Roger Ver did a video on the Lightning Network, sending a message to the followers who have faith it can solve Bitcoin network’s scaling issue. He had done some research himself, covering some drawbacks. Ver detailed that the off-chain scaling using Lightning Network for 10 billion people would take over 100 years, versus on-chain scaling for Bitcoin Cash, which would only take 40 years.

Ver said, “I have an offer for the OpenNode team and Tim Draper. You [Draper] invested $1.25 million in OpenNode, a Bitcoin-only payments processing startup. Well Tim, I’m offering to match your $1.25 million investment in OpenNode, with no strings attached equity-wise. I don’t need one share whatsoever. All I require is that OpenNode actually starts working on payment processing for Bitcoin Cash, the version of Bitcoin that has the most Bitcoin-ness about it.”

Technical Review – BCH/USD

BCH/USD daily chart. Price action is back within a bearish trend. Eyes are on key support levels; $146.50, $105.00 and $73.50.

As detailed earlier, BCH/USD is currently on a path of cooling, which has been the case ultimately since 24th December. The price ran into an area of supply, with the bulls failing to break this down for further upside. Since the recent December high print, BCH/USD has dropped as much as 40%, from $241.20.

Support Levels

Given the pressing south, eyes must now focus on potential areas of support. Firstly, $146.50 is a key daily support level. This was a bottom area from 25th November up to 4th December, before the bears managed to force a firm breach. BCH/USD most recently required this area for comfort on 25th December and has tested this on several occasions over the past few sessions.

Any failure of the above detailed $146.50 level holding, then the flood gates could open again to the bears. Further south, $105 will be sought, where BCH/USD consolidated between 6-10 December, before a resumption in selling pressure. Lastly, the December low area of $73.50 is the next major target.

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.

Featured image courtesy of Shutterstock. 

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

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