What Bitcoin tells about Bitcoin Cash?steemCreated with Sketch.

in #bitcoin7 years ago

When I think that BCH is going to hard fork over two days, and try to find out what will happen then with the market, I stop for a minute and ask myself: Wait, didn't I saw this before?

With Bitcoin Cash maybe not, but there were plenty of hard forks of it's brother, Bitcoin; hard forks that taught the investors that there are always chances to find free money, or at least a boost in price if investing early in a coin before hard fork. The only exception of this rule, which makes people a little more cautious can be considered SegWit2x which followed the same pattern as BTG, until a point where it stopped because of the well known canceling .

Cosidering the BTC graph:

BTC.PNG

I have marked the period of accumulation for BTG (in red) and SegWit2x (in blue). Before each of the hard forks, the price increased a lot. After the BTG hard fork the decline was not that profound because it started the second accumulation phase, for the SegWit2x, but now Bitcoin does not have a hard fork to accumulate for, and even worse for it's price, it started the period of accumulation for the BCH hard fork so it will lose additional value.

BCH.PNG

If we consider Bitcoin Cash, we could say that it has a soft increase (red line) resulted by interpolating it's values in the last three months, with a value around 500$. Right now we are able to see an increase in price even bigger in percents that the one experienced by Bitcoin when preparing for hard fork. This is because BCH has a smaller market cap, resulting a greater volatility, and the same amount of money flowing in it are creating a greater increase in percents. Right now we can say that BCH has 2.5x its value, so it increased greatly!

Evaluating the result in price after each Bitcoin's hard fork we can conclude that BCH will have a great decrease over two days, it's average value of 500$ acting as a resistance line for it. Then it will be an appropriate time to posses altcoins which will grow a lot, as they did after each important hard fork which implied a period of accumulation.

Note that this is just my opinion and not real investment advice and of course you will have to make your own research before risking your money into investments.I am really curious to hear you thoughts on this topic and about the current article.

Steem on!

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