Home / Crypto Currency / Bitcoin Cash Drops 5% as Crypto Market Retraces, Tokens Take a Hit

Bitcoin Cash Drops 5% as Crypto Market Retraces, Tokens Take a Hit


Advertisement

After demonstrating nearly a 50 percent gain within a three-day span, Bitcoin Cash dropped five percent of its value against the US dollar.

The volume of Bitcoin Cash, which hovered at around $1.4 billion on November 6, has since dropped to $950 million, by 32 percent. Still, on a weekly basis, the volume of Bitcoin Cash is up from $750 million from $200 million.

Ripple (XRP), EOS, and Stellar (XLM), three major cryptocurrencies that experienced fairly large gains against both Bitcoin and the US dollar, recorded a drop in the range of 3 to 5 percent, with XRP dropping back to $0.5.

Bitcoin is Still Stable, on Track

Throughout the last 48 hours, Bitcoin initiated a minor upward movement from around $6,390 to $6,550 with a solid two percent increase against the US dollar.

As major cryptocurrencies and small market cap tokens retraced, the price of BTC dropped by a small margin of around 0.5 percent.

On crypto-to-fiat exchanges like Coinbase and Gemini, BTC is being traded at over $6,450, up $60 since November 6.

Since August 9, BTC has maintained stability in the tight range of $6,300 to $6,800, and until the major $6,800 resistance level is broken, analysts expect the price of BTC to remain stable, possibly throughout November.

Technical analysis Ant stated that on November 7, BTC demonstrated extra momentum with confirmation of a short-term bullish movement. Given that the volume of BTC still remains above the $4.5 billion and considering that the daily volume of BTC dropped to as low as $3 billion earlier this month, the possibility of BTC making a move towards the $6,600 resistsanace level still exists.

“Successful breakout. What is key to watch now is the fact that price has opened above the trendline and not simply closed into its resistance. Open and close combined shows extra bull strength and confirmation. With roughly 2 hrs to end of day this is more than likely.”

If the retracement of the crypto market continues throughout the next 12 hours, which is likely due to the magnitude of the sell-off of several major cryptocurrencies, then BTC could test the $6,400 level as other cryptocurrencies extend their losses which currently range in between 2 to 4 percent.

December is the Target

As CCN reported yesterday, Jake Chervinsky, a government enforcement defense and securities litigation attorney at Kobre & Kim LLP said that the impact of Bakkt on the short-term trend of crypto is undetermined.

But, Chervinsky emphasized that the physical delivery of BTC by the Bakkt Bitcoin futures market could allow institutional investors to have a positive effect on the price trend of BTC.

“In other words, large institutions trust ICE with their money, including those institutional investors who many people think are key to the next bull run. Also noteworthy is the fact that Bakkt will custody & deliver real bitcoin. That means institutional inflows would reduce supply & thus (maybe) increase price too,” he said.

Depending on the growth of the Bakkt futures market, the ICE-backed crypto business could play as a major catalyst for BTC’s next major price movement.

Featured Image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.
Advertisement
Read more

Check Also

Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.