Enhanced BCH transactions, daily volume close to BTC

Just recently, the Bitcoin Cash community discussed the large number of transactions the network reached daily for the previous month. Statistics show that daily BCH transactions have increased since the last week of 2020. BCH miners have processed more than 300,000 daily transactions on different days for the past week.

The cryptocurrency economy and countless blockchain networks get more attention in recent months. Not only are some digital assets skyrocketing in value, but many of these tokens are also increasing in use.

More recently, Bitcoin Cash proponents noticed the BCH chain is processing more transactions than usual. Since the last week of December 2020, the number of BCH transactions per day has steadily increased northward and closer to the daily levels of the Bitcoin network.


Number of transactions Bitcoin (gold) and BCH (green) | Source: coin.dance

As of this afternoon, onchain data shows the BCH chain processed 282,010 transactions in 24 hours while BTC processed 334,793 in that time. This proves that BTC is processing 3.87 transactions per second, while BCH does 3.26.

Additionally, according to statistics from messari.io, Bitcoin Cash is currently the 4th most active blockchain after Dogecoin. Most of the time last month, Bitcoin Cash was the 3rd most active blockchain.

In addition, over 24 hours, data shows the Bitcoin Cash network paid out $ 4.34 billion out of 80,529 active addresses. On Friday, Bitcoin Cash supporters discussed the growing number of transactions on Reddit.

One thread noted that on January 29, 2021, BCH had 322.26k transactions compared to BTC’s daily volume of 322.22k.

“Community development, add-ons are on the rise and that’s the most important thing,” emphasized the author of the Reddit post.

Another person dubbed the “Trading Maximize House” wrote:

“The same throughput but the transaction fee is still 0.001 dollars. Great ”.

Even with increased transaction throughput, BCH transaction fees remain unchanged. BCH has a block size parameter of 32MB, and as of September 2018, the participants observed the chain processing more than 2 million transactions over a 24-hour period.

During this time in 2018, a time the community calls the “stress test,” BCH miners processed large blocks throughout the week. BCH miners currently still handle very large blocks, while BTC miners only handle the 1MB limit and separate segwit enhancements.

On Saturday, BCH proponents celebrated massive block 4723,044kB (4.7MB) at block height 672,532. The large block processed 14,910 transactions, and with the 6.25 BCH block reward only $ 25 fees were paid for confirming the transaction. Software developer Jonathan Toomim also talked about the larger block on Saturday morning.

“This block (672532) is mined at 15:30. The previous block (672531) consisted of only one transaction. Block 672530 is mined at 14:12, about 0.53MB every 10 minutes.

The Bitcoin Cash option was first launched by Bitmain founder Jihan Wu

One of the most influential crypto entrepreneurs in China, Jihan Wu, is using Bitcoin Cash (BCH) with his derivative platform.

Chinese blockchain journalist and industry insider Colin Wu announced that Jihan Wu has begun offering perpetual swaps on BCH through its Bit.com platform. According to Colin Wu, Jihan Wu also plans to issue the first BCH / USDT option in crypto history.

Bit.com adds perpetual swaps on Bitcoin Cash

As announced in Colin Wu’s latest tweet, Bit.com, a small centralized cryptocurrency exchange run by the Seychelles with the Seychelles, which adds the BCH / USDT perpetual swap. This release comes with a compelling promotional campaign with a $ 100,000 airdrop for early traders.

Impressive leverage of up to 33 times will be available to all traders of BCH / USDT positions. According to the official announcement of Bit.com, only new users (who have not used Bit.com products before January 20, 2021) are eligible to participate in the airdrop. The maximum bonus for a trader is 10 dollars BCH.

The campaign will end on January 27, and the BCH payments for the participants will be shipped out within three days of the campaign’s end.

In addition, Bit.com is offering 7 types of BCH bonuses for registering, submitting KYC information, participating in social media channels and sending large amounts of Bitcoin Cash (starting at 5 BCH, equivalent for $ 2,600).

Has the civil war ended?

On February 1, 2021, Colin Wu added, Bit.com will also list its first BCH options. As a result, the service (there is only one BTC / USDT pair active on Coinmarketcap so far) becomes focused on BCH adoption.

According to the Chinese insider, Jihan Wu decided to put all its strength into the “big loss on BCH” created by Bitmain. In turn, they lead to internal attacks on former CEOs and co-founders.

Jihan Wu left Bitmain in late 2020 with $ 76 million in compensation for his 20% stake.

With the policy of Jihan Wu, Bitmain, the world’s largest mining equipment manufacturer, could have invested more than $ 888 million in BCH, or 69% of 2017 record breaking cash flows.

BCH approaches long term resistance

Bitcoin Cash (BCH) price is approaching the long-term descending resistance line, which has been there since 2018.

While a short-term decline is probable, Bitcoin Cash is expected to eventually succeed in breaking out of this resistance line.

Long term resistance for Bitcoin Cash

The weekly chart shows that BCH moved above the previous resistance zone at $ 318, created by the 0.5 Fib retracement level of the most recent decline.

It is currently approaching the long-term descending resistance line that has been in place since August 2018. If a breakout succeeds, the next resistance zone will be found at $ 480.

The technical indicators are bullish, supporting the possibility that BCH will reach the descending resistance line and eventually a breakout.

Signs of weakness

The daily chart shows that BCH is moving to the ascending support line, currently found near $ 290. Although this is a bullish development, BCH is trading significantly above this line, so it still marks a significant level of correction.

Furthermore, BCH has created a three-top pattern, combined with long upper wicks and a bearish divergence in the RSI.

However, both MACD and Stochastic oscillator are still increasing.

A similar outlook is given on the six-hour chart, showing more pronounced bearish divergence in the RSI and MACD.

Hence, BCH can drop in the short term, possibly reaching a low of close to $ 308- $ 321 (the Fib retracement level of 0.5-0.618) before resuming its upward movement and a break above the long resistance line. term.

Wave count

While the complete wave count is not fully confirmed, the movements during November and December (marked) are like a flat A-B-C corrective structure.

If true, it means that BCH has started a bullish impulse.

This would be in line with the scenario outlined above, in which BCH will drop in the short term before a breakout breakout.

BCH / BTC

The BCH / BTC chart doesn’t look bullish at all. BCH broke below the 0.027 BTC support zone in August and has been moving down at a rapid pace ever since.

BCH / BTC is currently in the process of price discovery on the downside, and there is no sign of a bullish reversal suggesting that the trend will reverse anytime soon.

Conclude

While the long-term trend for BCH / USD is likely to rise, a break above the descending resistance line is needed to confirm this. A decline to short-term support is possible before a breakout.

BCH / BTC is in the process of price discovery on the downside and there is no sign of a bullish reversal.

The price of BCH surged 12% on the day after Bitcoin hit $ 24K

The price of BCH surged 12.22% over the past 24 hours after Bitcoin established a new all-time high above $ 24,000.

BCH prices in the last 24 hours | Source: CoinMarketCap

Yesterday afternoon, Bitcoin hit a high of $ 24,085, according to data from CoinMarketCap. Bitcoin has since dropped to $ 23,583 at press time.

BCH is the sixth largest coin by market cap. Despite being a fork of Bitcoin, its price follows the coin, similar to most major cryptocurrencies.

BCH launched in 2017 following Bitcoin’s block size dispute.

At 1MB, a team of developers argued that Bitcoin’s block size was too small to process transactions, meaning the coin could never function as a digital currency.

The team of developers led by Roger Ver and Jihan Wu argues that the block size (the number of Bitcoin transactions that can be processed in one batch) should be increased to 8MB to reduce transaction fees and speed up the network.

Bitcoin Core developers disagree as this will centralize the network into the hands of miners that can assist in increasing the block size. In any case, Bitcoin has never been seen as a cash replacement, argues the group, among them Blockstream’s CEO Samson Mow.

BCH supporters are adamant on the Bitcoin fork. They then voted to increase the block size to its current size of 32MB.

Last month, BCH forked again when a group of BCH developers known as ABC attempted to tax miners in order to grow BCH. The move was disapproved and the network forked again.