BCH/USD loses ground as Bitmain to deploy 90,000 in China to mine Bitcoin Cash after the fork

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  • Bitcoin Cash is sliding, but the overall trend is still positive.
  • Bitmain is getting ready for the Bitcoin Cash fork.

Bitcoin Cash, the fourth largest digital asset with market value $10B, is trading at $580 at the time of writing. The coin is down 3% in recent 24% and unchanged since the beginning of Friday. BCH/USD is one of the growth leaders on a weekly basis with over 22% gains.

Meanwhile, Bitmain is getting ready for the upcoming Bitcoin Cash fork. The manufacturer of mining equipment plans to use 90,000 Antminer S9 units for that purpose in Xinjiang Uygur Autonomous Region. The local mining pool operator told the Chinese media outlet Deep Chain that they had negotiated with all mining farm owners in the region offering them to install the required equipment.

The split between the Bitcoin Cash developers was caused by so-called pre-consensys protocol suggested by Amaury Sechét. The head of nChain Craig Wright criticized the idea. The dispute intensified with Bitcoin ABC update, and as a result, Craig Wright and his supporters decided to create their own version of Bitcoin Cash — Bitcoin SV.

It is worth noting that major cryptocurrency exchanges and mining pools support Bitcoin ABC.

Bitcoin Cash technical picture

Looking technically, BCH/USD is trading above both DMA50 and DMA100 ($518 and $491 respectively), which creates positive vibes and hints on further recovery in the longer-term perspective. However, the Relative Strength Index is reversing from the overbought territory, meaning that the downside correction may be in store for us. The first support lies with the above-said area guided by DMAs. Once it is broken, the sell-off may continue towards the congestion zone of $414-$400.

On the upside, the short-term resistance is created by the recent high of $647.17, followed by critical $700. 

BCH/USD, the daily chart

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