Bitcoin Cash spiked more than 10% as the market sideways, what’s going on?
Blockchain faces intense competition in 2019, with only a few altcoins remaining in good condition.
The idea of merging Bitcoin Cash and Dash
A new idea has been proposed that is the assumed fusion of Dash and Bitcoin Cash.
The two chains could merge, creating a “Bitcoin Dash” brand. Amanda B. Johnson, one of Dash’s prominent promoters and supervisors at DashInvest, proposed this idea.
Fun thought: Bitcoin Dash.
A blockchain merger between Bitcoin Cash and Dash.
Two chains competing for the same market (payments). Bitcoin Cash has the better brand, and Dash has the better tech.
The two combined would form a payments superchain called Bitcoin Dash.
— Amanda B. Johnson (@AmandaB_Johnson) December 26, 2019
The immediate reaction of the community was that the merger would create an even worse situation and in fact, the mixing of two assets would weaken them further.
The Bitcoin Cash brand has been extremely unsuccessful with the cryptocurrency community. Outside the group of loyal supporters, the Bitcoin Cash asset has been nicknamed a bit insulting as “bcash” and, along with the constant slippage, making BCH one of the worst performing altcoins in 2019.
Bitcoin Cash technology is still close to a first-generation blockchain, but with the important addition of recalculation difficulty that prevented the SHA-256 miners from hunting all the blocks, then abandon the chain and make it slow as crawling.
On the other hand, the Dash network, which still works on its protocol, is having problems with MasterNode security. The unique feature of the Dash project is the network of ambassadors who receive compensation to increase the use of DASH. So far, the DASH network hasn’t created email-like, readable addresses as promised.
The DASH asset has been further eroded when it is considered a pump & dump program.
Formerly the top 5 cryptocurrencies, DASH has sunk in the desert, plunging about 50% in 2019. DASH dropped to $ 39.95, also down from 0.02 BTC in January, to 0.005 BTC at the end of the year. Dash also reeled from an exit scam after one of its senior advisors fled with the money he held.
Another problem for a common network would be the specific node structures of the two chains. Running a Bitcoin Cash node is resource-intensive, as the network aims to spread relatively large blocks. On the other hand, the Dash network prefers to sell nodes, which still requires a significant investment. At the highest price of the market, when DASH hits $ 1,400, running MasterNodes is prohibited.
Dash price goes sideways while Bitcoin Cash spiked more than 10%
After the proposal was made, it seemed that the prices of both coins reacted but in opposite directions. Dash goes sideways and tends to go deeper, while Bitcoin Cash has seen a spike of more than 10%.
Dash is currently trading sideways with a price against USD of $ 40.3 and against BTC of 0.0055 sts. Both are the lowest prices for Dash in 2019.
After nearly a turbulent year with sad performance, in the last days of 2019, Bitcoin Cash has brought “happy wine” to the BCH community. Bitcoin Cash has achieved a massive 10% increase, the only two-digit increase in the top 100 coins at the time of writing. Bitcoin Cash is currently firmly consolidating the 5th position on Coinmarketcap.
Currently, the price of BCH is trading at $ 207, marking a sharp increase from the low reached on December 25 to $ 182.
Source: Trading View
BCH is currently being pumped up to the 1D resistance level. Trader CryptoGainz expects that short orders will be executed when BCH maintains at this resistance. If there is any indication that the new short order is tightening, BCh will increase in price.
What causes BCH to spike?
The sudden pump of Bitcoin Cash has made many people in the community wonder what the reason is when it has just witnessed an all-time low compared to BTC (0.025 sts) on December 25.
$BCH is pumping ?…. Someone knows something pic.twitter.com/mxQJgi7z6q
— Bitcoin [WeAreAllBitcoin] ✌️ (@Egon_01) December 28, 2019
Hairstylist PDX user tweeted that:
“Bitcoin Cash is rubbish and fake Bitcoin. Who is pumping BTRASH?”
Meanwhile, Sha256 users insist that the price will soon crash. When BCH made such a pump, Chinese whales wanted to keep the value in BTC high when the entire market fell in USD. Whales do not want BCH to fall below 0.025 sats (currently BCH reaches 0.028 sts).
However, there are some positive fundamentals that have recently come to BCH that could be the reason for the price rise.
BCH has achieved A rank for the audit ability according to the ranking of Coin Metrics, in which, node activity and Ledger restructuring are rated A.
BCHD developer Tyler Smith published the first draft specifications for a protocol called Snowlolobe, a propagation protocol for nodes using Nakamoto’s consensus, including BCH.
In addition, Binance, the largest cryptocurrency exchange, announced that Binance Futures has launched a permanent BCH / USDT contract with up to 75x leverage.
Not only that, global fast-food giant Burger King is currently partnering with payment service GoCrypto and is starting to accept Bitcoin Cash.
In addition to Burger King’s acceptance, BCH has also received the support of Rakuten, Japan’s largest e-commerce giant, as AZCoin News reported. Users can now convert loyalty points in exchange for Bitcoin Cash along with Bitcoin and Ether.
It is also possible that the price increase is a slow effect after the Bitcoin Cash network successfully upgrades the changes in the latest set of rules for the protocol.
Bitcoin Cash successfully erased the last flexible vector of BIP62 and extended the Schnorr signature.
With these positive news, the BCH price increase is understandable. However, the BCH spiked by two percent digits while the entire market was sideways made many people suspicious of a classic pump & dump (but it seems that a 10% increase is still not enough to do that). Will BCH maintain the momentum and breakout to new highs? Only time will tell.
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