Today may prove to be somewhat of a difficult day for most cryptocurrencies. After nearly 10 days of solid upward momentum, the bearish pressure is forming quickly. A few currencies are still in the green whereas others are bleeding value. The Bitcoin Cash price, for example, has quickly lost 13.5% in value, which is still somewhat surprising. How low this price will go in the coming hours, remains difficult to determine.
Bitcoin Cash Price Correction Sets in
Anyone who has kept a close eye on cryptocurrencies for more than a few months will notice uptrends will not last forever. In the past week and a half, we have seen the value of all cryptocurrencies rise rather spectacularly. In the case of the Bitcoin Cash price, that value has increased by nearly $800. It is only normal such a massive upswing will be met with resistance and a retrace at some point.
Over the past 24 hours, it has become more than apparent the Bitcoin Cash price will not hold onto its $1.500 price level, for the time being. It is certainly possible the Bitcoin Cash price will return to that level after this dip is over, but for now, it is all about finding stable support once again. With a massive 13.67% dip in the past 24 hours, it is evident finding stable ground may prove to be very challenging, depending on how much panic is created by this sudden course reversal.
Even though most altcoins- including BCH – had noted strong gains against Bitcoin all week long, that trend is also reversing. Considering how the Bitcoin price is still in the green, the BCH/BTC ratio must be taking a beating. That is exactly what is happening, as this ratio has decreased by nearly 15% in the past 24 hours. If Bitcoin were to go down in value as well, these losses may become a lot steeper in the coming hours.
One thing keeping Bitcoin Cash afloat is the massive trading volume. Sitting at just below $2bn in 24-hour trades, there is no reason to despair just yet. However, the sellers are in full control of the BCH trading market right now, and it is evident there will be some panic selling across the globe if this trend remains in place for more than a few hours. From a long-term perspective, a push to $2,000 before the Summer is still possible.
Similar to the past few days, OKEx is still the leading exchange for Bitcoin Cash trading volume. Its lead over Bitfinex is not all that big, though. Upbit is a bit further behind, and it is competing with Huobi, Binance, and GDAX for that third spot. There’s a lot of fiat currency trading activity in the BCH industry right now, and this current negative trend may come to a halt a lot sooner than people expect.
Whether or not this will result in a complete reversal of the gains made throughout the past ten days, is very difficult to predict. A correction is healthy when dealing with massive price changes in quick succession. Right now, the total cryptocurrency market cap still sits above $400bn, although that level may not be sustained for much longer. It will mainly depend on how the Bitcoin price evolves, as BTC still dictates the momentum for all other cryptocurrencies.