Bitcoin Cash Market Update: BCH/USD short-lived rally falls short of $400

• Bitcoin Cash recovers towards $400 but an inverted head-and-shoulders pattern jeopardizes the bullish momentum.
• Roger Ver’s Bitcoin.com pulls down from the proposed BCH mining reward tax citing the lack of community support.

There are mixed red and green signals in the cryptocurrency market. Bitcoin is among those assets still sustaining the intraday gains accrued on Monday, and particularly during the Asian session. The largest digital currency, Bitcoin (BTC) has lost 0.57% of its value after breaching the coveted $9,400 to record a new January high at $9,431.

Looking at the cryptocurrencies live rates table, Bitcoin Cash also forced to deal with a reversal movement after the rejection at $390 (intraday high). It has a market value of $383 and has corrected a higher 1% on the day. The existing trend is bearish while the volatility remains at high levels.

Bitcoin.com backs down on proposed BCH mining tax

A new statement, released on January 28 said that Roger Ver’s Bitcoin.com is pulling down from the recently proposed 12.5% tax on all Bitcoin Cash (BCH) mining rewards, citing fear of revolt. The proposal was made along with other BCH mining pools but met a lot of criticism from the community. The tax in question was to be channeled towards a network development fund. However, Bitcoin.com has removed its support saying that serious alterations will have to be made before going forward with the proposal.

“As it stands now, Bitcoin.com will not go through with supporting any plan unless there is more agreement in the ecosystem such that the risk of a chain split is negligible. We think it is clear that the existing proposal does not have enough support.”

Bitcoin.com added in the statement:

We will be working to come up with a plan that is profitable for all the relevant parties and which preserves the fundamental economics of Bitcoin Cash.

Bitcoin Cash technical picture

Bitcoin Cash price appears to be forging another path to breaking the resistance at $400. The earlier rally in January zoomed above $400 but failed to sustain gains past $404. The negative momentum following the rejection explored levels beneath $300 before the bulls pull a reversal surprised for the bears earlier this week. For now, BCH is trading at $382 and still pushing upwards. All the attention is on $400, besides the bulls are supported by the upward moving RSI as well as the MACD, which features a bullish cross.

BCH/USD 4-hour chart