Bitcoin Cash Crypto Doesn’t Look Healthy: Analyst Opinion

Bitcoin Cash crypto doesn’t look quite healthy as we can see the charts after the BCH first-ever halving. In our Bitcoin Cash news today we take a closer look at the price analysis.

Unlike Bitcoin’s block reward halving, this event was not bullish for the altcoin and suffered a lot of fundamental losses since April 8^th according to a lead crypto analyst.  The underlying Bitcoin Cash network took a strong hit after the April halving as Yassine Elmandjra, a popular crypto analyst at ARK invest, as BCH sustained a huge blow to what the analyst said he was ‘’genuinely surprised that we haven’t seen a large scale attack yet.’’

Bitcoin Cash is not looking healthy:

-Hashrate down 30% since halving (& only accounts for ~2% of SHA256 hash)
-Economic throughput at all time lows
-Fees are .05% of miner rev (<$100/day)
-Theoretical 51% attack costs <$10k/hr

Surprised we haven't seen a large scale attack yet

— Yassine Elmandjra (@yassineARK) May 23, 2020

There are three leading factors that backed his analysis. Bitcoin Cash’s hash rate decreased 30% after the halving and put the coin at its all-time lows, costing less than $10,000 per hour to attack a blockchain. The on-chain metrics such as a hash rate and fees are not correlated with the crypto prices but a few transactions are only taking place on Bitcoin cash which suggests there is a wider market disproportion against it which will pose a threat to the prices.

Bitcoin Cash’s position as an altcoin is quite unique but it is not the only altcoin that is posed to underperform from the wider crypto market. According to the previous reports, Josh Olszewicz who is a popular trader and analyst said that Bitcoin’s dominance printed a textbook golden cross, considered a bull sign.  The golden cross happens when a short-term moving average crosses the long-term moving average and is usually followed by a bullish breakout. This way, the 50-day simple moving average crossed above the 200-day simple moving average of BTC dominance.

The Bitcoin Cash crypto didn’t follow this path as it dropped soon after its halving event. Olszewicz’s outlook on altcoins was echoed by the lead technical analyst to which he added:

 “ETH heading for levels not seen since 2016. LTC trading below 2014-2016 prices. XRP heading for levels from 2014, 2016, and 2017. The alt market looks like it could capitulate soon. Seems like the worst is yet to come but afterwards should provide huge opportunities.’’