There is a high chance that Bitcoin Cash will splitted into two independent chains after November 15 because developers community couldn’t reach a consensus about the next protocol update
After Coinbase and Binance officially announced on their website 3 days ago that they will support the network hard fork, BCH/USD recorded a significant hike for three consecutive days. Yesterday (Nov 4th), the pair hit the two-month high at $593.8, increasing by 31% from $409.
According to Bitcoin Cash roadmap, the network is scheduled for a hard fork twice a year to integrate and activate new upgrades. The last fork happened smoothly without any hampers. This time, however, the blockchain team led by Craig Wright called nChain didn’t share the same thought with the proposal from Bitcoin ABC (Bitcoin Cash core team) who developed BCH from BTC in August 2017.
Regarding the fork plan, Binance — the world’s second largest crypto exchange informed their support: “We will take a snapshot of all Bitcoin Cash balances at UNIX time 1542300000, 2018/11/15 4:40:00 PM (UTC). Deposits and withdrawals of Bitcoin Cash will be suspended starting from 2018/11/15 3:00:00 PM (UTC) … We will make a separate announcement after the snapshot is complete to notify users when deposits and withdrawals for Bitcoin Cash will reopen.”
Following Binance, Coinbase also confirmed: They will “monitor the hard fork process and work to minimize customer disruption until the network meets Coinbase security standards … In the unlikely event that multiple viable chains persist after the fork, Coinbase will ensure that customers have access to their funds on each chain.”
In the meantime, one of the most famous start-upa in crypto storage solutions Ledger revealed that they will accept the dominant chain after hard fork based on both technical and economic stability in order to protect the holders.
Currently, BCH/USD has broken above the downtrend in the triangle pattern on chart D1 above. Positive supports may fuel the engine for the pair to linger under the resistance at $657. It is likely that investors will have a great escape at this point in order to protect their belance before the market turmoil. As the result, Bitcoin Cash would retreat from this level dragging the pair down in line with bearish crypto market.
Additionally, RSI is above the overbought indicating upcoming reversal.
It’s almost impossible to predict the outcome of the hard fork, traders are recommended to close their positions and take profit soon around the technical resistant area of $660 — $680.
Written by nami.today