What is Bitcoin Cash, and should you buy it now?

Bitcoin Cash is a blockchain hard forked from Bitcoin

Bitcoin Cash has faster and cheaper transactions than Bitcoin

BCH has gained by more than 5%, displaying some similarities to Bitcoin

Bitcoin Cash BCH/USD is a cryptocurrency ranked at position 30 by market cap. The cryptocurrency was created from a hard fork of the Bitcoin network on August 1, 2017. Bitcoin Cash was meant to solve the challenge of slow and costly transactions on the Bitcoin network. 

Bitcoin Cash has major resemblances to Bitcoin. Both have a hard cap of 21 million tokens. Besides, Bitcoin Cash is a proof-of-work blockchain like the mother blockchain. However, BCH is faster and carries lower fees. As such, it can support smaller transactions besides having smart contract functionalities.

BCH, the native token of Bitcoin Cash, was not spared by the recent crash. The token trades at $104 from above $400 at the beginning of the year. At press time, BCH has been up 5.10% in the last 24 hours. That’s roughly the same gains as 5.16% recorded for Bitcoin. We find almost similar trends in the price movement of BCH and BTC. Investors could be looking at BCH as an alternative when most cryptocurrencies recover. But should you buy it now?

Bitcoin embarks on a bullish momentum but faces resistance.

Source -TradingView

Technically, BCH has a short-term bullish momentum. The cryptocurrency is recovering as bullish sentiment develops. The MACD indicator has moved above the moving average, signaling a bullish push. The 14-day and 21-day moving averages offer support for BCH. We expect BCH to continue rising in the short term. The cryptocurrency will face resistance at $111. 

Concluding thoughts

Although BCH is recovering, we can’t confirm a lasting bullish momentum. Short-term investors should hold up to $111. Long-term buys are recommended, although a price drop is possible at the $111 resistance.

The post What is Bitcoin Cash, and should you buy it now? appeared first on CoinJournal.