BCH - HTF Accumulation 📈

1. Bitcoin (BTC): Acceleration of Surrender and the End of a Vicious Cycle
The price decline of Bitcoin since the beginning of the year has gone beyond a simple market adjustment and triggered a seismic shift in the mining ecosystem. The gradual decrease in hash rate that had been detected earlier eventually led to a 'miner's surrender', and the recent plunge in prices has further accelerated this process.

Mining operators, pushed to the brink of profitability, had no choice but to dump their holdings into the market to survive, creating a vicious cycle that pressured prices downward. Fortunately, Bitcoin managed to rebound near its mining cost, and the hash rate, which had been declining, has finally shown signs of recovery, indicating that it is entering a bottoming phase.

2. Bitcoin Cash (BCH): Establishing a Positive Feedback Loop Through Reflexive Gains
On the other hand, Bitcoin Cash has shown a unique trajectory, steadily increasing its hash rate regardless of the market's decline. While Bitcoin was trapped in a vicious cycle of 'price decline → miner's surrender', Bitcoin Cash benefited from absorbing these departing miners through a 'reflexive effect'. (The two use the same mining algorithm)

The miners who migrated from BTC have not only strengthened the security of the BCH network but also acted as a strong downward support force. Even amidst the volatility of the altcoin market, BCH has become the driving force behind its relatively strong recovery resilience.

3. Wyckoff Perspective: The End of Accumulation and the Threshold for Explosive Growth
From a technical perspective, reviewing the past few months' trends, it appears that Bitcoin Cash is currently undergoing a typical Wyckoff Accumulation process.

The accumulation of mining forces from BTC is estimated to have already been largely completed, and the current structure is on the verge of entering the 'Expansion' phase, where energy is being accumulated. With the network's fundamentals (hash rate) and technical indicators aligning, a strong upward explosion is expected to occur soon.

As we all know, the ancient fossil Bitcoin Cash has shown excellent defensive capabilities in this bear market. Although it has been posted several times in the channel, the technical structure is still in the process of accumulation - but why is it that only it has such a good structure in this declining market? I'm just speculating on my own. There probably weren't many people who got trapped in BTC, but it seems that many people will get trapped in the next one, LIT.
#What’sNextforBitcoin?