It appears the Bitcoin Cash party is over for the time being. Over the past week, we have seen this altcoin surge in value for no apparent reason. After peaking at nearly US$700, the correction is setting in as we speak. With a 6.29% loss over the past 24 hours, the Bitcoin Cash price has dropped to US$627. At this rate, it may return to sub-$600 levels pretty soon.
Bitcoin Cash Price Returns to Normal
It has to be said that the past week has been a very fun and wild ride for Bitcoin Cash. With the Bitcoin Cash price climbing from US$350 all the way to nearly US$700 in short order, there was some good money to be made. For the people who purchased BCH at the top, however, reality will be setting in very shortly. After being rejected at US$680, the Bitcoin Cash price quickly dropped below US$600. We knew this correction would be coming sooner or later, although it may not be over yet.
This steep dip to US$571 created a good buy opportunity for anyone chasing quick profits. People who bought in at that time quickly made US$70 in profit when the price bounced back to US$642.05. However, that bounce was swiftly followed by another dip, and the price is currently struggling to find stable ground above US$600. It is not unlikely we will see the Bitcoin Cash price go back below US$600 before the day is over, even though nothing has been set in stone just yet.
Whenever a cryptocurrency gains in value for no apparent reason, everyone knows a retracement is bound to occur sooner or later. While it seems unlikely the Bitcoin Cash price will drop to US$350 again anytime soon, the possibility is certainly there. It will be interesting to see if this momentum can be maintained for now, although the market is slowly turning against BCH as we speak. People are cashing out and taking profits, as they should be doing whenever the Bitcoin Cash price shows signs of weakness.
The Bitcoin Cash trading volume is also starting to dry up a bit. Although weekends traditionally generate less trading volume for all major cryptocurrencies, the price decline combined with dwindling trading volume may spell a rough patch ahead for BCH. Over the past 24 hours, there was US$1.49 billion worth of trading volume. That is pretty solid for an altcoin, although this number will continue to drop in the coming days by the look of things.
Bithumb is still the largest market for BCH trading right now. With over US$756 million in 24-hour volume, it is well ahead of Bitfinex and Coinone. It is interesting to see so much fiat currency support for this altcoin right now. Then again, the bigger question is whether or not that can be maintained for much longer. Particularly with Western exchanges valuing BCH at US$610 or less, it seems additional volatility is on the horizon. Another push toward US$700 isn’t out of the question either, though.
All things considered, speculators and market manipulators need to keep an eye on Bitcoin Cash this weekend. There is plenty of room to make some quick profits while all other markets are trying to stabilize. Whether or not things will improve or head south for BCH is anybody’s guess right now. Things could easily swing in either direction with a little bit of momentum. It’s an interesting moneymaking opportunity, to be sure, albeit one that also carries a lot of risk.