Bitcoin Cash Price Pumps Starts Losing Steam as Value Drops by $70 in an Hour – The Merkle

Things are still progressing pretty nicely for Bitcoin Cash right now After two solid days of upward momentum, it seems things are still improving as we speak. With the Bitcoin Cash price now hovering near the $450 mark, the upward momentum is stronger than ever. Bitcoin Cash also has a very strong trading volume right now, even though the underlying reason for this development remains to be determined.

Bitcoin Cash Price Continues Bullish Momentum

It is somewhat surprising to see BCH continue this positive trend despite two strong days prior. In most cases, altcoins can hardly ever sustain momentum after one day of pumping, let alone two. Whether or not this means the Bitcoin Cash price surge is an effective pump or not, remains to be determined. People who hold BCH as part of their portfolio won’t care much as to what the reason behind this momentum is, though.

At the time of writing, the Bitcoin Cash price has surpassed the $450 mark. Considering how this value was well below $350 a few days ago, one can certainly say things have changed quite a bit. Such a surprising turn of events is not without precedent in the world of Bitcoin Cash, though, as we have seen similar upward trends as well. In every case, the trend is eventually broken and reversed. It is possible that is what is going on with BCH right now, though.

To be more specific, the Bitcoin Cash price briefly surged to $520 just a few hours ago. Ever since reaching that point, the price has dropped by $70. That in itself isn’t entirely surprising, considering the Bitcoin Cash price is still up by $90 compared to a few days ago. Any strong upward momentum will eventually be thwarted by people taking profits or purposefully driving down the value for selfish gains.

One thing keeping the BCH pump going right now is the massive trading volume. On most days, BCH generates $200m or less of trading volume, which is still pretty respectable. These past 24 hours, however, that volume has suddenly increased to $1.71bn. It is evident this is not a natural increase by any means, even though the Bitcoin Cash price increase will certainly have attracted a lot of new speculators to partake in this market right now.

Speaking of the BCH trading volume, Bithumb is still the place to be. Even with this heavily inflated trading volume, Bithumb is responsible for almost half of all trades. This still indicates the price growth will certainly collapse at some point, although no one knows when that will happen. Coinone and Korbit complete the top three of exchanges by volume right now. It is evident South Korea shows an appetite for this altcoin while the rest of the world still doesn’t care about it all that much.

It is impossible to guess what the future will hold for Bitcoin Cash. This upward momentum has all of the telltale signs of an extended pump. Given the recent $70 decrease in a matter of an hour, it is evident sustaining this momentum will falter at some point. An eventual retrace to $350 is very likely at that point, as most people are still in profit right now. Things will remain interesting where BCH is concerned, although the eventual bloodbath will be pure carnage as well.

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