The Bitcoin Cash uptrend is still in full effect, even though no one can explain why exactly. We have seen the market capitalization of BCH rise to nearly US$10 billion over the past few days, which is more than twice what it was not too long ago. Moreover, the Bitcoin Cash price itself has quickly risen from under US$360 to over US$580. It’s an interesting trend to keep an eye on, to say the least.
Bitcoin Cash Price Rally Continues
It is remarkable to see how the Bitcoin Cash price has evolved over the past several days. A week ago, the BCH price was well below US$350, which appeared to be the ceiling at that point in time. Ever since then, however, things have certainly evolved in a rather interesting direction. While it remains to be seen how “valuable” BCH really is these days, no one can deny speculators are having a lot of fun with BCH right now.
That being said, the past week has seen some interesting dips as well. After the Bitcoin Cash price rose to US$515 on October 29th, a big dip soon followed. More specifically, the price dropped all the way to US$420 in short order, which seemed to indicate that this Bitcoin Cash pump would come to an end sooner or later.
Surprisingly, that isn’t how things played out. Rather, the Bitcoin Cash price started to rise again and quickly retook the US$480 level. Over the past two days, this trend has remained intact, pushing the BCH price to US$580.5 in the process. That is quite remarkable, to say the very least, even though there is still the question as to why Bitcoin Cash deserves to be valued at this level. After all, it is an alternative version of Bitcoin with far less traction and usability compared to the real thing.
Speculators couldn’t care less about whether or not Bitcoin Cash is useful these days, though. The US$1.329 billion in 24-hour trading volume shows how speculation is driving the Bitcoin Cash price up first and foremost. It is evident a lot of people want to make good money by buying BCH cheaply and selling it at a higher price. Right now, it seems a price correction is only a matter of time, although this has been on the horizon for nearly a full week now.
The demand from South Korean speculators is bigger now than it ever was; that much is rather evident. Bithumb has generated over 51.3% of all BCH trades over the past 24 hours, which is a very worrisome trend. Few people seem to actually care about that, though. Coinone and Korbit are a distant second and third on the list of the top three exchanges ranked by trading volume. Indeed, most major exchanges haven’t seen a big increase in BCH trading volume lately.
Whether or not the Bitcoin Cash price can surpass its previous all-time high remains a big mystery. Even with the current gains locked in place, the all-time high sits at over US$1,100. That means the current Bitcoin Cash price is only halfway there, and it is highly doubtful this pump can be maintained indefinitely. Right now, it seems BCH is going up when Bitcoin goes up. Once that trend reverses – and it eventually will – this market could get pretty bloody very quickly.