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Bitcoin Cash (BCH) is up 9% on the week, tests key resistance


invezz.com 2020-10-16 17:20
Reading time: ~3 m

Bitcoin Cash (BCH) price is trading over 9% higher this week to bring the buyers to a key weekly resistance near $255. 

Fundamental analysis: A new merge mining pool captured 33% of Bitcoin Cash hashrate

Supporters of Bitcoin Cash (BCH) have been recently talking about a new high-hashrate mining entity that joined the network. HathorMM is a new merged mining pool that accounts for 33% of the Bitcoin Cash hashrate.

Right now, the Bitcoin Cash (BCH) network has 2.77 exahash (EH/s) of SHA256 hashrate and has welcomed a new mining pool which the Bitcoin Cash community calls HathorMM and said the project is a merge-mined network.

HathorMM currently controls 33% of BCH’s hashrate, 22% of which are in the last seven days. Coin Dance said HathorMM is now the largest Bitcoin Cash mining pool when it comes to hashrate. 

HathorMM is a merge mining operation which indicates that miners can mine both BCH and hathor. Hathor’s official website states that the project is a “scalable and easy-to-use blockchain for digital assets.” According to the quick guide found on the website, merged mining can be performed with BCH, BSV, and DGB.

It also said that its mining pools aren’t controlled by the Hathor team. There is around 84,448,933 HTR in circulation at the moment. According to the market cap aggregators, HTR is worth about $0.321 a unit and there’s close to $79,000 in trade volume on Monday afternoon. 

HTR was worth about $.0058 per unit on September 25, meaning that it grew by 540% during that period. It appears that HTR is trading only on one exchange and it’s paired against Bitcoin on Qtrade. HathorMM is also a part of BitcoinSV (BSV) network and currently commands around 4% of BSV hashrate.

In the meantime, the Bitcoin Cash is expecting a network upgrade on November 15. 

Technical analysis: Bulls up their game 

BCH buyers have pushed the price action towards to $265 to log the highest levels in 6 weeks. They are today attempting to force the price movements to close higher for the ninth consecutive day. 

Bitcoin Cash daily chart (TradingView)

The price action is now testing the key weekly resistance located just above the $250 mark. The area hosts both the 200-DMA and 200-WMA as the buyers attempt to force a weekly close above this zone. This would allow the BCH buyers to push the price movements towards the next resistance zone at $275 (the purple line).

Summary

Bitcoin Cash price is trading higher for the second consecutive week. Separately, the Bitcoin Cash community has been discussing a new mining entity lately that controls about 33% of BCH hashrate and has surged around 540% in value in less than a month.


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