As the name suggests, Bitcoin Cash is much like Bitcoin, but it offers some unique features. Many analysts believe that it has the original bitcoin technology to create peer-to-peer transactions laid out by the founder of the BCH protocol pseudonym as Satoshi Nakamoto.
It is a decentralized electronic cash system that does not rely on any central authority or third-party interference. The core features of Bitcoin Cash are:
- It is open to anyone, and users do not need to ask permission to use it.
- Identities are not revealed during transactions, so it protects privacy without censorship.
- All transactions are recorded on a global blockchain, allowing anyone to see the entire history of ownership and eliminating potential frauds.
- The blockchain is stored in nodes that ensure the longevity of information.
- It follows a quasi-political system, which means a high degree of consensus is required to make changes in the protocol.
- The proof of work process ensures that hacking the network is expensive and could not profit the attacker directly.
- It is a reliable, fast, and affordable mode of transaction and a popular alternative to payment networks like MasterCard and Visa.
However, it is not popular like Bitcoin. What is the future potential of this coin? Let’s analyze the price from both short and long-term points of view.
At the time of writing this post, the price is $289 and almost $100, down from the initial support level. Due to US bond yield-related news, and the upcoming Fed meeting, the global market has been down in the last two weeks.
Besides that, crypto regulations in different countries like India, USA and China also played a vital role in this downfall.
As it has broken the last support level, now the level may work as a resistance level, but the price may bounce back quickly, and $450 will work as a major resistance level.
On the daily chart, like many other cryptocurrencies, the MACD line is bearish; RSI is in the oversold zone for BCH. Bollinger Band also suggests extreme bearishness, and the only positive sign is the increase in volume. However, this is the situation for most cryptocurrencies, and that is why it takes time to mark the actual buying point.
Short-term investors should not invest in this crypto until it shows positive momentum. The future depends on the adoption of this token in the market. Many merchants use Bitcoin cash for transactions, but it will take time to become popular like its counterpart, Bitcoin.
If you trust this coin, it could be the best time to invest because the global market is bearish; theoretically, it is the ideal time to invest. However, please read the latest news related to government regulations and price analysis.
