Bitcoin Cash “Hash War” Is Over But How Is The Price Outlook For BCH & BSV
Bitcoin Cash underwent a hard fork on November 15, with two distinct cryptocurrencies created, one going by Bitcoin Cash (Adjustable Blocksize Cap) ABC while the other is Bitcoin (Satoshi’s Vision) SV.
Over a month later, the “hash war” is over and the two networks have begun focusing on developing their respective platforms.
However, price-wise, the two networks have little to separate them, despite the ABC chain dominating in the market for much if the last 30 days.
Bitcoin Cash formed in August 2017 after a group of developers keen on increasing block size split from the main Bitcoin ledger.
In November 2018, the Bitcoin Cash community failed to agree on network upgrades, and a divisive hard fork was inevitable, leading to a “hash war” that threatened cryptocurrency.
The resultant sell-off saw the market experience a price crash from which most crypto assets are struggling to recover, and which saw the total cryptocurrency market capitalization shrink by over $80 billion.
At the moment, both BCH coins (ABC and SV) trade on leading cryptocurrency exchanges, including Binance and U.S. based Coinbase.
One notable thing about their market performance is that after a month of experiencing wild volatility and hash power fluctuations, the two coins currently are only $10 apart.
BCHABC and BSV just $10 apart?
Early November, Bitcoin Cash traded at prices near $630. The cryptocurrency then lost about 33 percent of its value to trade at a low of $421 on November 14, a day to the fork, data from XBT.net shows.
In the aftermath of the divisive split, both Bitcoin Cash ABC (BCH) and Bitcoin SV (BSV) began trading as distinct coins. BCH traded at $295 while BSV exchanged hands at $90 on the world’s leading exchange Binance.
BCHABC has maintained an upper hand in terms of price performance over much of November and early December. That price lead at one point reached nearly ten times higher that of the BSV coin.
However, the gap has narrowed with time, to a point CoinMarketCap shows that current prices for the two cryptocurrencies are less than $10 apart.
BCH currently trades at $87 against the USD, while BSV is exchanging hands at $78.
With prices so close, it is apparent that the public is yet to settle on one of the coins as the favorite chain.
What is the outlook like?
In all likelihood, the eventual success of either network will depend on fundamentals like overall usage and hash rate. However, a more immediate picture of just what direction the coins will take can be deduced from a technical analysis approach.
A look at the BSV/USDT price chart shows that its price formed a descending triangle- a bearish consolidation pattern that began on November 26 and broke on December 16.
The break has opened the door for further decline, with the coin relying on support at $74 and below that at $54.
Based on the consolidation pattern, it is likely prices will head lower. Oversold conditions as shown in the coin’s intraday Relative Strength Index (RSI) could be responsible for a slowdown in the rate of decline.
As for Bitcoin Cash ABC, the outlook is likely to remain bearish as it has been since trading began. The coin has lost about 80 percent of its value, although prices may experience an uptick given the oversold conditions.
With Bitcoin (BTC) and the rest of the market also struggling bounce from the price downturn, it is more than likely that any upsurge in either of the BCH coins will rely on the general recovery in the market.
BCHABC has a market capitalization of $1.45 billion while that of BSV stands at $1.3 billion.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.