There is utility in Bitcoin Cash and their ambitions of becoming Bitcoin’s replacement is real. In fact going by the number of developments and adoption especially in SE Asia, Bitcoin Cash deserves recognition. Yes, it’s a BTC fork but at its core it advocates the ideals of the original core network despite BitPico’s claims.
From the News
Talk is cheap, action speaks louder than words. We have heard these words over and over again but do they reflect the actions of BitPico and Bitcoin Cash? Well, we know Bitcoin Cash has supporters and critics in equal measure.
"Bitcoin Cash" is centralized sock puppetry. https://t.co/OJJo5vwEfn
— Nick Szabo (@NickSzabo4) December 21, 2017
Some think they are nothing more than a “centralized sock puppetry” as Nick Szabo publically said while others think Bitcoin Cash is a coin from heaven. Both may or may not be right but BCH is really is a utility coin. Thanks to their structure, network improvement is easy. Fact is there is yet another upgrade set for November 2018 barely two months after hard forking and increasing their block size to 32 MB.
Talking of BitPico, they claim they have solid findings after unleashing “5,000 attack nodes” to show that Bitcoin Cash is indeed centralized. They have reason to believe that close to 98 percent of Bitcoin Cash servers are “sitting in the same server rack” and asking Bitcoin Cash officials to explain this. Unfortunately, this is not the first time that these centralization allegations have surfaced.
54% of reachable Bitcoin ABC (bcash) nodes are running on Hangzhou Alibaba virtual servers in China. Compare that to 2% of reachable Bitcoin nodes running on Hangzhou Alibaba servers. pic.twitter.com/hXuYuXkYrp
— Jameson Lopp (@lopp) December 20, 2017
A while back, members of the community noted that close to 50 percent of Bitcoin Cash nodes ran from Alibaba’s servers. Then again, Micro-soft went ahead throwing jabs at any attempts of increasing block sizes saying those were “degraded decentralization” limiting the network’s ability to scale and hampering through put on a world scale.
Bitcoin Cash (BCH) Technical Analysis
Bitcoin Cash is syncing with bears just like the rest of the markets. It’s down nine percent in a week over week basis as sellers continue to ramp up their positions with targets at $600. $600, as we said before is a key support line and an anchor point for our analysis since it marks 2018 lows.
In case there is a revival then we need to see injection of buy pressure at around this support line like it was in early April 2018 when buyers rejected lower lows and edged higher. If not and the depreciation continues, then it’s likely that sellers might test $300 or Oct 2017 lows, our next support line.
While we realize that sellers are in charge, let’s also recognize the risk reward ratio is a little bit tight now. As before, our main support line at $600 is but $100 away.
It won’t make sense to risk $150—since supports would be above July 2 highs- to gain $100 or less in the next few days in our sell trade. So, the best approach here is to wait for a reaction at $600. If sellers slice through that level then we shall trade a break out as mentioned before with targets at $300.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.