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Bitcoin Cash Is Consolidating: Should You Invest in BCH?

Bitcoin Cash Is Consolidating: Should You Invest in BCH?

One of the most significant drawbacks of blockchain is scalability. As Bitcoin grows, the first problem it has faced is a slower transaction rate. It also means the transaction fees are higher. Bitcoin Cash comes with the solution. It increases the block size of the Bitcoin ecosystem. It is a hard fork of the Bitcoin algorithm that comes with some changes.  

Bitcoin Cash was released in 2017 with a hard cap of 21 million. Anyone who held the Bitcoin on the day of releasing the Bitcoin Cash got a similar amount of BCH. Just like the original blockchain, users can send and receive funds on the BCH network with faster transactions and lower fees.  

Many people thought they could sell Bitcoin Cash after getting it for free of cost. However, it performed well and provided a good return to its investors. Still, it is in the early days. Many merchants accept this, but its popularity will depend on its adoption in the real world. You can open an account and buy Bitcoin Cash using your currency. Before investing in Bitcoin Cash, please read this price analysis.

BCH Price ChartWhile writing, the BCH price is trading around $325. On the daily chart, $270 is the support level, and $340 is a strong resistance level. The candlesticks rise from the support level and face resistance around $340. We think the chart may consolidate in that range for a few weeks. However, we have to analyze the indicators for a better view. 

On the daily chart, MACD is bearish; the RSI is above 45. Moreover, candlesticks are forming above the baseline of the band. Overall, the chart is bullish in the short term, but we think the price will return to the support level within a few days.

BCH Price ChartOn the weekly chart, the MACD is bearish; the RSI is below 40, and candlesticks are forming in the lower half of the Bollinger Band, which suggests bearishness. 

Should you invest in this coin? According to the BCH price prediction, it is not a good time for investment. The price will fall further or consolidate in a range. If you want to invest, please wait until it decisively crosses the resistance level of $270. The long-term chart is in a downtrend, so we would not prefer to advise you for long-term investment. If you want you can buy it for the short term.  

In the next few months, the price will be volatile, so you should keep a closer look at the price and invest only when you find it suitable. For more updates, please follow our website.

Carl Newton is a blockchain analyst and has 4 years of experience in bitcoin exchange. He makes people aware about the importance of cryptocurrency trading. He writes latest news contents for our team.