Bitcoin and Bitcoin Cash are once again in the headlines. The current news revolves around the looming Bitcoin Cash hard fork which many people speculate might affect the market. Bitcoin had a fairly great week that saw it gain 2.49% after a fall of about 0.18%.
Bitcoin’s strong recovery was recorded over the day with the FIB retracement level and support levels painting a clear picture of the progress. Bitcoin has enjoyed a long stay at the top of the market since it was launched. The position of the crypto has however been challenged by various other alternative currencies including Bitcoin Cash. Admiral Markets has on several occasions testified of Bitcoin’s performance in the market.
The breakthroughs made by Bitcoin to move from $8,628 to $8,884.5 has sent a lot of positive signals in the market. Investors have gained a lot of confidence not only from the great performance but by the consolidation that definitely has chances of being sustained. The hope for many players in the industry, and especially investors, is that Bitcoin will finally break the $9,000 barrier and possibly hold for a while. This would ease a lot of pressure in the market and create the vibrancy that is needed. The barrier will quite possibly be broken during the course of the week as the current lows have sustained beyond ordinary levels.
The opinion in the market will have the final say on Bitcoin’s prospects
One overriding feeling currently is that the overall opinion in the market will ultimately determine where the selling pressure will end up taking Bitcoin. The resistance levels are definitely going to be above $9,000. This is where the Bitcoin Cash hard fork will come in. The extremities of the resistance levels will be reliant on the hard fork since it will be in great focus.
The possible repercussions of the Bitcoin Cash hard fork
The Bitcoin Cash hard fork is expected to come with some repercussions for Bitcoin. Even though BTC is way much stronger than BCH, the market for Bitcoin is still very much affected by any developments made on BCH. Since the newer crypto was launched in mid-2017, analysts and investors have progressively continued to watch the possible shock waves that could be instigated by BCH. So far, only a few things have changed. BCH has only managed to marginally affect BTC since the former crypto is still getting its foothold in the market.
The market is currently thus in a short limbo as the opinion remains diverse. Some are anticipating an increase in demand for BTC while others think that the demand might actually drop. Whether the demand ultimately increases or drops, there will definitely be repercussions on either of the cryptocurrencies. Most people specifically care about the effect that BCH will have on BTC since a lot of investment is apparent in the latter. A negative outcome would thus put Bitcoin in oblivion until the market reverts back to normalcy.
The failure of Bitcoin to cross the $9,000 barrier will definitely result in a market upheaval. The selling pressure will be apparent and it is highly likely that the drop that will ensue will take over a day to recover. A drop to the lows of around $8,000 will particularly be damaging and any price levels lower than that will be a clear sign of major turbulence.
The expected market status
Even though the BCH hard fork has major aftereffects in the market, the wait that has already been prevalent in the market has had major consequences. The clash between the two cryptos that will come after the hard fork will thus only add to a disturbance that has already started and which will persist despite the bearish trends of Bitcoin. The demand for either currency might not change significantly but the support and resistance levels will definitely move a lot.
The BTC/BCH clash is one that is definitely a characteristic of the cryptocurrency market. Any time there are major or even minor movements in this market, there are always bound to be some sort of upheaval. The movements in the market are however never sustained to the extent where major shifts. The Bitcoin Cash hard fork is thus probably the major event to watch in the market before other developments in the crypto market ensue.