Bitcoin

Bitcoin Cash Rally Extends as BTC/USD Eyes 10K

Bitcoin Cash Rally Extends as BTC/USD Eyes 10K

Bitcoin Cash (BCH) has risen from $800 to approximately $1,400 in few sessions and is showing bullish momentum. BCH has moved up about 17% today and has risen 80% over the last seven days.

The upcoming ‘fork’ of the currency, which is a change to its underlying code, is the underlying reason for the price rally. Bitcoin had crashed in the first quarter of FY 18.

Bitcoin cash is expected to move towards a hard-fork on May 15th. The planned fork will increase the maximum block size from 8 MB to 32 MB and will also remove the SegWit protocol. As a result, the move towards the hard-fork will increase the size of the blocks of transactions that are processed. However, the new coin that is created from the fork will completely replace the old coin, which could be bit risky

Bitcoin Cash Price Analysis

bitcoin cash price chart

Source Coinmarketcap.com

After moving to approximately $1400 level, the next level on the upside is $1600 level. However, the traders should cautiously trade with a stop loss. Bitcoin Cash has a history of vertical falls, so the investors should keep booking profits.

Meanwhile, there is a spike in trading volumes for bitcoin cash trades in Japanese yen and Korean won over the last few days. The move by Chinese bitcoin giant Antpool to restrict supply of bitcoin cash is also supporting the rally of the cryptocurrency. The major exchanges Bitstamp, Coinbase, Kraken, Bithumb, GDAX, Binance, Poloniex, Bittrex, and more support BCH trade.

Additionally for BCH payment, now there is a integration with Bitpay’s payment processor services, under which thousands of merchants can accept bitcoin cash including well-known companies like Microsoft, Newegg, and more.

BTC/USD

Meanwhile, BTC/USD has broken out of the 50-day SMA on the upside after being range-bound for seven days.  The next target on the upside is $9,400, where the traders should book partial profits. Once this level is crossed, the next target of $10,000 is possible.

However, if prices do not hold above the 50-day SMA, it will be a bearish sign and prices can fall to the first support level of around $7,900. Therefore, the traders should keep a stop loss while trading Bitcoin.

Positive Update from India

A positive update is expected from India as there is an expectation that the “crypto-ban” put in place by the Reserve Bank of India and finance ministry may end up in the high court. This means that the cryptocurrencies demand will go up and they will continue their positive momentum.

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