- Bitmain holds at least one billion BCH, which is a risk to the network due to the firm’s growing difficulties.
- Bitcoin Cash struggles with the resistance at $320 ahead of the seller congestion at $340.
Bitcoin Cash is wallowing in selling pressure; a reflection of the red-painted cryptocurrency market. The fourth-largest cryptocurrency in the world is down 6% on the day. Bitcoin Cash has a market capitalization of $9.89 5.81 billion and features a 24-hour trading volume of $4.43 billion.
Bitcoin Cash bleak future with Bitmain growing difficulties
Bitcoin, a global leader in cryptocurrency mining continues to undergo difficulties, especially in its top management. Moreover, the plans to have the company listed through an IPO hit rocks last year. However, the firm plans to “restart the listing application work at an appropriate time in the future.”
Bitmain also ended its management contract with DMG Blockchain, a mining operator based in Texas, hinting at growing management issues. The future of Bitmain cannot be guaranteed, especially with power struggles at the center stage. Considering the mining giant holds 1 billion BCH, investors in the network need to be alert.
Bitcoin Cash technical analysis
Bitcoin Cash seems to be struggling with the resistance at $320. The immediate downside is protected by the ascending trendline. Further downward movement looks possible and expected to shield the bulls from immense damage is the 61.8% Fib retracement level, taken between the last drop from $367 to a low around $192.44. Other levels likely to come in handy on the downside are $280 and $260.
On the upside, the resistance at $340 has been tested severally. Breaking past this hurdle might take some time and will require immense buying power. However, once cleared, BCH is likely to find a smooth ride to $360.
BCH/USD 4-hour chart