Bitcoin Cash (BCH) has seen a brief comeback in recent weeks after more than a year of low price action, but a struggling chart structure could see BCH headed for zero in the near future.
Originally created as a fork of Bitcoin in 2017, the result of splits over the notorious BIP91 Segregated Witness (SegWit) upgrade, which opened the door for Layer 2 solutions like the Lightning upgrade.
With the goal of enabling larger blocks on the blockchain, Bitcoin Cash spun off as the first of Bitcoin’s forks and has since become a cult altcoin.
But in recent years, since the tumultuous end of the 2021 bull run, price action has bottomed out, following a dramatic -87% cascade that left BCH trading around $90.
However, a few weeks ago on June 19, a surprise rally rally was ignited, fueling the hopes of the BCH community as the price action soared as much as 200%.
But it appears that the rally has been short-lived, apparently breaking above $330 on June 1.
Bitcoin Cash (BCH) Price Analysis: Doomed to Collapse?
After the impressive rally rally, which saw BCH push higher, breaking the 20DMA and 200DMA resistance, the price action has turned worse.
As of today, BCH is currently trading at $236.5 (a 24-hour change of -2.23%).
This comes amid an emerging cascade, which has seen BCH bleed out -29% in just 20 days.
Worse yet, BCH was unable to find much-needed support from the rising 20DMA, which gave way on July 14.
With little to provide local support, BCH appears to be on a collision course towards the 200DMA (currently at $140).
BCH headline bullishness is now pegged to the nearest lower support zone between $150-190 (based on historical data).
There is no comfort to be found in the BCH indicators either, with the RSI still vaguely near 48 (probably needing to cool down further) and the MACD signaling bearish divergence at -10.
With a bullish target at the upper trend line around $300 (a possible +26 move) and significant downside risk at the $150 support level (a potential -36% drop), the outlook for BCH looks gloomy
BCH is currently facing a Risk:Reward ratio of 0.74, and both viewers and analysts are predicting that a run to zero could soon be on the horizon.
Best Bitcoin Cash Alternative: BTC20
But all is not lost for the ranks of Bitcoin aficionados looking for opportunities to maximize their profits in the Bitcoin space, with a new project emerging captivating the hearts of Bitcoin maxis and evangelists alike.
Launched yesterday, in a highly anticipated move, BTC20 has emerged as a new contender for the best Bitcoin altcoin, with the visionary promise of fixing Bitcoin’s dirty power problem and bolstering holders with lucrative reward mechanisms.
How does BTC20 fix Bitcoin’s dirty energy problem?
The main criticism of Bitcoin in recent years stems from the huge carbon emissions generated by Bitcoin miners globally.
Reliance on energy-intensive proof-of-work mining has seen emissions rise from just 0.9 metric tons in 2016 to a staggering 113 metric tons in 2021.
With the increasing difficulty of Bitcoin mining, and a looming halving event next year, BTC20 has stepped up to fix Bitcoin’s power consumption.
By switching to a proof-of-stake model, based on ERC-20, BTC20 keeps the promise of reducing emissions in 99.95% for each transaction.
How does BTC20 boost holders with rewards?
But BTC20 goes beyond simply reimagining Bitcoin’s environmental impact, it aims to bolster the ranks of loyal holders with the introduction of a novel rewards system for long-term holders.
Cardholder rewards will be delivered through a bet-2-win mechanism, which will incentivize cardholders to participate in validation in the proof-of-stake system.
The proposed staking mechanism will distribute 14.96 million tokens, unsold in pre-sale, over a period of 120 years, providing longevity that may well outlast Bitcoin’s own original network.
With an initial 3 million tokens up for grabs in the sensational BTC20 pre-sale, at an attractive price of just $1, BTC20 is expected to help create a whole new generation of Bitcoin holders.
With the promise of seismic returns fueled by a tokenomic supply matching Bitcoin’s 21 million tokens and a committed team of developers working on the 120-year roadmap, BTC20 is your chance to become an all-coiner.
Don’t miss out on the future of Bitcoin.
Buy BTC20 here
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all your capital.
