With the Bitcoin price still stuck in a bearish trend, other cryptocurrencies are suffering as well. Bitcoin Cash is one of the few currencies declining by 11% or more over the past 24 hours. That is not a positive sign, especially considering how BCH was getting pumped earlier this week. Then again, anyone could see that the pump cycle would come to an abrupt end at some point.
Bitcoin Cash Price Heads Toward $400
This week has been pretty interesting for Bitcoin Cash holders. More specifically, we saw a brief pump earlier in the week which could have pushed the price to US$550 or more. At that time, it was also evident only one exchange was actually generating a decent amount of volume. Such trends can never be maintained for very long, and the Bitcoin Cash price has started to retrace ever since. No one will be surprised by this development.
Fast forward to today, and the Bitcoin Cash price is bound to go below US$400 very soon. That is quite a difference in price from earlier this week, although it was only a matter of time until things changed. While some people may see value in Bitcoin Cash, it doesn’t offer anything Bitcoin can’t, other than an 8MB block size. Ever since Segregated Witness fully activated on the Bitcoin network, there has seemingly been less interest in BCH other than for speculative purposes.
Earlier this week, Bitcoin Cash had close to US$1 billion worth of 24-hour trading volume. This surge in volume was mainly driven by South Korea’s Bithumb exchange. Right now, that platform is still the largest Bitcoin Cash market, as it represents 46.76% of all trades. However, no one over at Bithumb is interested in pumping up the price right now, as it seems most people are simply selling BCH and reducing their losses as much as possible.
With the 11.74% value decline over 24 hours, things are not looking great for BCH holders. Some people still have high hopes of Bitcoin Cash becoming the “Bitcoin of China,” but it seems that is nothing more than a dream right now. It is evident there is a strong bearish sentiment across all cryptocurrency markets, although no one can pinpoint the exact reason for the time being. With all of the China news behind us, there should be no reason for all markets to lose value again and again.
Although the current price of US$412.71 is still more than acceptable for Bitcoin Cash, it is evident this situation will not last for long either. While some people may not like to hear this, it is very possible that the Bitcoin Cash price will go well below US$400 over the next few hours. It is losing value against both the US dollar and bitcoin simultaneously, which means it will be incredibly difficult to turn this ship around again. Only time will tell how things play out, though.
One positive side to all of this is how a lower Bitcoin Cash price allows new holders to enter the market. For those people who believe BCH is destined to become more valuable in the future, buying in at US$400 seems to be a solid choice. Do keep in mind all cryptocurrency markets are subject to severe volatility, and BCH is certainly no exception. That doesn’t mean this currency has no future, but it all depends on how the developers move things forward.