As of November 15, Bitcoin Cash (BCH) went through a hard fork which created two different tokens namely Bitcoin Cash SV and Bitcoin Cash ABC. One month after this split the new coins are trading close to each other in value.
Bitcoin Cash (BCH) Price Today – BCH / USD
Bitcoin Cash (BCH) is Designed to Fork After Six Months Per Year
During the fork, developers adopted a software upgrade to the network. If miners of Bitcoin Cash and developers reach an agreement, then all changes go through while the chain will remain intact. This is known as a soft fork.
However, with the most recent fork, any changes in the upgrade didn’t get agreement hence the fork formed two separate chains. Both Bitcoin Cash SV and Bitcoin Cash ABC are trading on several exchanges. One recent article noted that both coins are just $10 apart in price. Several exchanges are still using the old Bitcoin Cash symbol (BCH) for Bitcoin Cash ABC.
December Has Seen Prices Have Wild Swings
We can recall back in November, that Bitcoin Cash reached a high of $621 although by November 14 it had fallen to $421 which was one day before the fork. Immediately after the fork, Bitcoin Cash ABC opened trading at $295. As for Bitcoin Cash SV, trading opened at $90.
For much of November Bitcoin Cash ABC was far the leader of the two cryptocurrencies going on to lead its competition by ten times its value. However, towards the end of November the gap narrowed and now in December Bitcoin Cash SV has taken a slight lead.
The period before and after the fork has seen the digital asset market including the leading token Bitcoin experience a downturn in prices. In fact, during the period since the fork, the market has lost over $80 billion. As a result, both coins that came through the fork have started depreciating in price. As of press time Bitcoin Cash SV was trading at $70, and Bitcoin Cash ABC was trading at $80 according to CoinMarketCap.
The long-term success of either coin is likely going to be determined by lash power and usage. However, a technical analysis of the tokens can help us give a prediction regarding how their prices may change in the future. According to Ouimet, Bitcoin Cash SV formed a bearish price movement known as the descending triangle as of November 26. This movement broke down on 16 December. This has opened the way for a greater depreciation in value with two support areas at $74 and $54. Considering the huge size of the triangular movement the support level attained is likely going to be reached. But, the drop may be delayed because the relative strength index has indicated oversold conditions.
Since hitting the Bitcoin Cash, ABC and Bitcoin Cash SV have been going through a downtrend since they hit the market. There are no evident support areas nearby for Bitcoin Cash ABC. It is difficult to predict when the price of the coin may pick up. However, it shows oversold conditions as well so a corrective bounce is also a possibility. Before the two coins can increase in value, both Bitcoin (BTC) and the wider market prices must increase.