It has been 2 days since the SegWit2X hard fork got called off, and the effects of the cancellation have really started kicking in. At press time, the bitcoin price has fallen into the $6500 range after reaching an all-time high of $7888 on Wednesday, November 8.
No 2X: No Bitcoin Price Rally?
The bitcoin price began falling almost immediately after the initial bump that came in response to the 2X fork cancellation. For the rest of the 8th, and all through the 9th, the price stayed above $7000. Then, at 6 AM EST Friday morning, the price took a huge fall from $7100 to $6800.
After a few hours of maintaining in the $6800 range, the price plummeted as low as $6490 at 1 PM EST.
According to the Bitsonline technical price analysis, $6500 should serve as a support, preventing the bears from driving the bitcoin price any lower. However, that analysis assumed the fork would happen as scheduled, so we’ll have to see if the $6500 support will still hold up.
Additionally, the Bitsonline analysis projected a new long-term objective at $12000 — considerably higher from the previous forecast of $9000 by 2018. With the ongoing correction, we’ll have to see if the bulls still want to push the bitcoin price higher once the bears calm down.
Bitcoin Cash Skyrocketing
On the other hand, Bitcoin Cash has launched into a huge bull rally since Wednesday, rising almost $300 to a record high of $900.
Since the Cash rally started, the cyrptocurrency community has speculated that people are selling their BTC and buying BCC because of the hard fork cancellation. Since the fork got called off, the Bitcoin blockchain will continue mining 1 MB blocks, while Cash pumps out big blocks that handle more transaction volume.
While SegWit supporters might say keeping 1 MB blocks is preferable to increasing the size limit, the price charts suggest that the rest of the community may believe otherwise.
On the other hand, the inverse reactions of BTC and BCC to the hard fork news may simply be knee-jerk, and previous patterns could resume once the excitement dies down.
Regardless, without the 2X part of the New York Agreement, Core-controlled Bitcoin will stay at odds with Bitcoin Cash. And at this rate, a Cash flippening could become a serious possibility — resulting in on-chain scaling becoming the de-facto scaling solution.
How long do you think this correction will last? Let us hear your thoughts.
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