Things have not looked all that great for Bitcoin Cash over the past week or so. With the value in a nearly constant decline, a lot of people were tempted to give up on BCH altogether. It turns out the Bitcoin Cash price is experiencing a small rebound right now, having seen a 12.5% gain over the past 24 hours. For now, the Bitcoin Cash price is hovering around US$350 again, although it remains to be seen if this trend can be maintained.
Bitcoin Cash Price Rebound Looks Dubious
One has to acknowledge the way the cryptocurrency markets have evolved over the past few days. In the case of BCH, things went from bad to worse last week. With the Bitcoin Cash price dropping from US$336 all the way down to US$305, things were not looking great by any means. Ever since that time, however, the Bitcoin Cash price has started to rebound a bit, even though there had been significant market pressure to push the value down to US$310 not too long ago.
Fast forward to today, and the Bitcoin Cash price has jumped back to US$350 out of the blue. Whenever big gains like these are noted without apparent reason, it is usually an indication of a pump-and-dump cycle. Whether or not that is the case as far as BCH is concerned remains the big question for the time being. Although the Bitcoin price is going up at the same time, Bitcoin Cash is seeing gains in both the USD and BTC markets.
It is a bit unclear why the Bitcoin Cash price would start to go up all of a sudden. After all, this uptrend only began a few hours ago and there have been multiple attempts to push the price back down in the process. There will be plenty of profit-taking by the people who bought in low, whereas other investors may decide to break even and look for better investments. There is no reason to think Bitcoin Cash will return to US$800 anytime soon.
One thing working in favor of BCH is how the 24-hour trading volume is picking up again. More specifically, we are seeing a volume of over US$346 million right now, which is a bit higher compared to the previous few days. Considering how the value and volume of BCH fluctuates on a regular basis, it is to be expected this volume will go down again in the future. Only time will tell whether or not that is the case, though.
Looking over the exchanges ranked by trading volume, Bithumb is leading the charge. This seems to further hint that the current Bitcoin Cash price trend is a pump-and-dump, although no one knows for sure how long it will last. In most cases, momentum runs out within 24-36 hours of the initial pump. Bithumb generated US$133 million worth of BCH trading volume, which is almost 40% of all trades. Once this exchange moves on to the next pump, BCH will likely go down again in value pretty quickly.
That doesn’t mean there isn’t good money to be made when it comes to Bitcoin Cash right now. More specifically, people who can predict these market trends will make a nice profit along the way, whereas others will get caught up in the FOMO and eventually lose out. Cryptocurrency markets are volatile in every possible way, and that situation will never change. Pump-and-dump cycles are pretty common when it comes to most top altcoins, unfortunately, especially when the Bithumb trading volume starts picking up.