All cryptocurrency markets are suffering from a major price retrace as of right now, minus some small exceptions. The Bitcoin Cash price is unsuccessful in escaping this gravitational pull, effectively push the price back to do below $1,400 for the first time in nearly a week. It is a matter of time until the markets recover, though, and the Bitcoin Cash price should surpass $1,500 soon enough.
Bitcoin Cash Price Takes Solid Hits
It is not uncommon for alternative currencies to suffer when the Bitcoin price is going down in value. In most cases, a 3% Bitcoin price dip translates to a loss of 5-6% or more for most altcoins. It seems this brief bear cycle will be no different in this regard, as the Bitcoin Cash price is down by as much as 8.49%. While that may seem worrisome to some novice traders, it is a rather regular occurrence in the cryptocurrency world. There’s no reason to panic over this small dip whatsoever.
With the Bitcoin Cash price dropping below $1,500 for the second time in a week, it remains to be seen what the next few hours will bring. More specifically, the previous dip below $1,500 lasted all but an hour or two before the market bounced back rather strongly. Ever since, the Bitcoin Cash price remained stable above $1,500 for some time, although the past 24 hours have proven to be rather troublesome in this regard.
This current 8.49% decline in value is not just the result of the Bitcoin price dropping either. Unfortunately, Bitcoin Cash has also lost 4.92% in value compared to Bitcoin itself, which only compounds the price retrace even further. It is a temporary dip after some solid momentum over the past few weeks, which is completely normal. If nothing crazy happens, the Bitcoin Cash price should return to $1,500 rather quickly.
With $695m in 24-hour trading volume, the demand for Bitcoin Cash is a lot lower ha most people would expect it to be at this stage. More specifically, we have seen a volume of several billion Dollars in recent weeks, although that has somewhat subsided for the time being. With a lower volume and Bitcoin losing value, it’s only normal the Bitcoin Cash price is also on the retrace as we speak.
What makes this whole situation even more intriguing is how HitBTC currently generates the majority of Bitcoin Cash trading volume. This exchange outperforms OKEX’s BTC and USDT pairs with relative ease. An interesting development, although it seems to be a matter of time until OKEx starts throwing its weight around. The first fiat currency market is Bitfinex’s BCH/USD pair, which generated just $38.47m in the past 24 hours.
For now, it’s important to remain calm and hold. Cryptocurrency markets will see some volatility on a regular basis, and this appears to be a temporary retrace first and foremost. The overall trading volume is up by nearly $4bn compared to yesterday afternoon, which is a positive indicator. Whether or not this will result in positive Bitcoin Cash price momentum later today, is difficult to predict at this point. Anything is possible in the world of cryptocurrency, that much is rather evident.