Cryptocurrencies like Bitcoin can be divided into forks. A fork is simply a branch of blockchain technology. It can occur in any cryptocurrency, not just Bitcoin. These forks are created to evolve or improve a particular currency. There are two types of forks:
Hard fork – This is the change of network protocols that makes previously invalid blocks and transactions valid and vice-versa.
Soft fork – This is a change made to the software protocols where only previously valid blocks or transactions are made invalid.
The technical analysis relates to statistical trends gathered mostly from historical price and volume data to identify opportunities for trade. This is crucial in making investment decisions and proper trading in cryptocurrencies. You can apply technical or fundamental analysis when trading in Bitcoin. This article will highlight the technical analysis of hard Bitcoin forks such as Bitcoin SV, Bitcoin Gold, and Bitcoin Cash.
Cryptocurrency networks and hard Bitcoin forks.
Bitcoin Cash (BHC).
Bitcoin Cash was created in August 2017 from a hard Bitcoin fork. It was established to solve the problem related to the size of Bitcoin blocks that caused Bitcoin to be very slow. The introduction of BHC contributed to the creation of blocks twice the size of those in Bitcoin, increasing speed and efficiency.
Bitcoin Cash is an easy choice when you want to trade in cryptocurrency because of its huge market capitalization. It also uses the same algorithm as Bitcoin for mining. You can trade bitcoin cash and other cryptos at Nakitcoins. It is important to note that Bitcoin Cash and Bitcoin have similar transaction histories to date.
Bitcoin SV (BSV).
Bitcoin SV was designed and released to the market in November 2018. It is a fork of Bitcoin Cash and works to restore the original Bitcoin protocol as defined by version 0.1 of Bitcoin. BSV has remained in the top twenty coins since its forking. It has caused a massive movement of developers and businesses from Bitcoin Cash. It emphasizes on scaling on-chain as fast as possible while still supporting the original vision on Bitcoin.
The BSV price is highly volatile, but this does not decrease its performance in the market. In July, Bitcoin SV went up to 48% following the breach of the support given by the 50-day moving average since May.
Bitcoin Gold (BTG).
Bitcoin Gold is a fork of Bitcoin that was created in October 2017 on block 419406. It was established with the purpose of making Bitcoin decentralized again. It also saw the change of the mining algorithm of Bitcoin.
After failing to break above the $31.5 resistance level, Bitcoin Gold has recently dropped down to the $18 support level. This is an important level for Bitcoin Gold because it has prevented its price from being pushed down on multiple occasions in the past.
Recent research on the advantages of Bitcoin cryptocurrency shows that Bitcoin forks are improving and indicating a rise in the market. To successfully trade in BSV, BTG, and BHC, you should keep up with the trends and technical analysis of these cryptocurrencies.