- Bitcoin Cash plunges 4.5% cancelling hard fork fueled gains.
- Bitcoin Cash buyers battle to retrace above $600; $640 is the key hurdle and breakout point.
The cryptocurrency community has always been excited during hard forks. A part from the network upgrade hard forks that do not lead to the formation of new tokens, other hard forks reward holders of assets with equal number of tokens they hold in the parent coin. The Bitcoin Cash community is about to experience the first hard fork where the network will split into two different chains.
Bitcoin Cash staged a good upside move from the major support at $400 after declines hard formed lows of $407. The price recovered above the resistance at $440, opening the way above $500. The gains progressed past $600 but hit a snag on brushing shoulders with $640. Like many other hard forks in the past, the price has recovered tremendously as investors take their positions to receive an equal number of coins in the new token. The disagreement among Bitcoin Cash members failed to reach a consensus hence the hard fork on November 15. A couple of tokens will be created, but only one will continue to be Bitcoin Cash chain.
In the meantime, Bitcoin Cash is trading at $599 ahead of the hard fork. The price failed to find support at $620 leading to a slide below $600. The 100 SMA is currently working as a support bounce wall above $580. Another support is highlighted by the 38.2% Fib level. On the upside, the 50 SMA (1-hour) will prevent upward movement at $613.58. The critical resistance at $640 is a breakout point that will see Bitcoin cash embark on another journey above $700.
BCH/USD 60’ chart