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Bitcoin Cash Struggles Against Resistance Ahead of Block Size Increase

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Bitcoin Cash
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The price of Bitcoin Cash reversed sharply from $1,500 last week. This has reinforced $1,500 as a key resistance level ahead of the hard fork scheduled for tomorrow (15 May). All eyes are now on that level as a break could see BCH displacing Ripple’s XRP as the third most valuable cryptocurrency, bringing more buyers to the market.

Fundamental View

Market participants continue to hold widely conflicting views about Bitcoin Cash. However, it’s important to note that its price performance has been better than most had expected, and it has managed to retain a strong following.

As far as adoption of Bitcoin Cash goes, there is little evidence that it is outperforming Bitcoin Core. As of March, Bitcoin Segwit transaction alone outnumbered transactions on the Bitcoin Cash blockchain.

Tomorrow’s hard fork will result in the block size for BCH being increased to 32 MB, which will allow more transactions to be to be included in each block. Critics have pointed out that given the current number of transactions currently taking place, this is unnecessary.

Since launching, BCH has mostly traded at between 7.5 and 20 percent of the value of BTC. It’s currently trading at around 16.5 percent of BTC’s value, and mean reversion would suggest a move back toward 12 percent – or $1,000 at current BTC prices. That is unless the long-term relationship is going to change in BCH’s favour.

Bitcoin Cash vs. Bitcoin Core (Image Credit: www.tradingview.com)

The Technical Picture

Bitcoin Cash rallied over 200 percent from a low of just above $600 on 6th April. Since reaching a high of $1,844 on 6th May, the price action has been bearish with a series of lower lows and lower highs.

Bitcoin Cash Price Action Since 6th April Low (Image Credit: www.tradingview.com)

Trendline resistance now coincides with horizontal resistance at $1,500. A break above this level may well result in an explosive move to the upside. This would likely result in BCH becoming the third largest cryptocurrency and bring new buyers to the market.

However, a rally may not be sustainable in the long term unless there is news that supports a rally or significant new buying across the broader cryptocurrency market.

If on the other hand, support at $1,275 and $1,236 give way, the bearish trend will be confirmed.

Conclusion

The bulls are looking for BCH to break $1,500 following tomorrow’s hard fork. If that level does break, new buyers may be attracted to the market and the price would quickly reach $1,655 and possibly $1,848. Beyond that, the market will be looking for news to support a longer-term rally.

If, however, support at $1,275 and $1,236 is broken, traders may wish to hold short positions until the trendline is broken – it’s possible that the price may retrace all the way to $600.

This article was written by FX Empire

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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SonicX
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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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Bitcoin

The rise of the crypto casinos

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In the hyper-competitive world of online casinos, operators are always looking for ways to stand out from the crowd. The most usual methods include using distinctive branding, offering generous bonuses and making sure that they are on all of the major so-called affiliate sites where players can compare and contrast casinos’ different offerings.

But now a whole new generation of casinos are starting to emerge – ones whose key difference isn’t what and how you play, but more in how you pay.

The rise and rise of the cryptocurrency casino is seen by many as the next logical step in a world that is slowly but surely starting to accept that Bitcoin, Ethereum, Ripple, et al. are certainly here to stay.

Of course, it’s the first of these cryptocurrencies that has really grabbed the headlines and led the way with its meteoric performance in 2017 when it seemed like its $20,000 value was just the start of the story. Admittedly, this was short-lived and the value quickly fell back to a more sustainable level but, if it achieved one thing, it was to cement this exciting new kind of currency in the consciousness of the general public.

Why Bitcoin and online casinos are the perfect partners

In many ways, it’s the perfect partnership between Bitcoin and online casinos with multiple benefits for both.

The first of…

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