Skip to content Skip to sidebar Skip to footer

Bitcoin Cash Price Down Ahead of a Major Upgrade 101
Source: iStock/MicroStockHub

Bitcoin Cash (BCH) is scheduled for an update on the network’s consensus rules today to make the network more secure. In the meantime, the price of the 4th coin by total market capitalization is dropping.

The Bitcoin Cash network will undergo a planned protocol upgrade as per the roadmap on November 15th at around 12:00 UTC. At pixel time (11:54 UTC), BCH has dropped 1% in 24 hours and almost 4% in the past week. In comparison, BTC, ETH and XRP are also down by 0.5%-1% in the past 24 hours.

According to the full specification and the summary for the November upgrade, there are two major security-related features that will be included and one recommended change:

  1. Schnorr signatures for OP_CHECKMULTISIG(VERIFY): all signature checking operations will support Schnorr signatures, which will enable more complex multi-signature transactions.
  2. Enforce MINIMALDATA in script: thanks to the minimaldata rule, the majority of transactions on the network (including all P2PKH transactions) on Bitcoin Cash will be ‘non-malleable,’ which means that they can’t be tampered with.
  3. Automatic replay protection for future upgrade is not a consensus change but is recommended: its purpose is to serve as a full node version-deprecation mechanism and to cause full validating nodes that do not upgrade to automatically separate themselves from the main network after the next upgrade on May 15th, 2020.

The new features are meant to allow some enhanced functionality, such as hidden smart contracts, but the upgrade doesn’t affect regular BCH users, who don’t have to prepare for the network changes. However, miners and node operators are advised to download and run the latest version of a BCH client. For example, Bitcoin ABC, Bitcoin Unlimited, Bitcoin Verde, Parity Bitcoin, BCHD, BCASH, Flowee, and Bitrim are ready to conduct the upgrade. There’s also a testnet available for the upgrade features to be tested.

Meanwhile, it can’t be said that BCH price doesn’t usually react to the developments in the Cryptoworld. As a couple of recent examples, while the coin’s network security was questioned in late October, its price was rising. A day after, the price rallied, surpassing USD 290 for an hour, after the news broke that the prominent supporter of BCH, Jihan Wu, is back as the CEO of major crypto mining company Bitmain. Speaking of the price, Roger Ver, the main proponent of BCH, said it may be worth 99,900% more ‘some day’.

Sead Fadilpašić , 2019-11-15 10:59:01 ,

Source link

Leave a comment

NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

Source link