Bitcoin Cash (BCH) jumps to $21.8B market cap amid general crypto market consolidation.
Bitcoin Cash Surges Close To 40% As Market Rebounds
Bitcoin Cash climbed sharply today, pushing higher as the broader cryptocurrency market continued to recover from its recent weakness.
The digital currency surged to as much as $1,317.27, CoinMarketCap data showed.
According to Forbes, at this price level, the alternative protocol asset or “altcoin” had risen more than 38% from the low of $951.67 that it reached yesterday, additional CoinMarketCap figures reveal.
Further, Bitcoin Cash was more than 72% higher than Tuesday’s low of $764.04.
Bitcoin Cash analysis: BCH/USD advance gaining momentum, resistance seen around $1325
Bitcoin Cash up as much as 25% during trading on Thursday
Rising to highest level in two weeks
Resistance seen at $1325
According to Fxstreet analysis, Bitcoin Cash is outperforming the rest of the market during trading on Thursday, seen up over 25%. The market opened at only around $950, to then go on and print highs on the day over $1300. The crypto market volatility is just showing no signs of slowing down this week, it has been full of swings.
The Bitcoin Cash price has moved to its highest level in two weeks, the price had been steadily falling since the 22nd December 2017. It looks to be a breakout of the recent range trading and softer sentiment.
Looking technically at BCH/USD, the price jumped in early trade by around 16%, then consolidated for a couple hours. A bullish pennant pattern was formed, which saw a breakout to the upside, by another 10%. Resistance is seen at $1325, with support at $995.
Why Bitcoin Cash Is Soaring
The more transaction-friendly bitcoin spinoff had three separate pieces of positive news today. Most of its peers did not.
Thursday wasn’t a big day for most of the major cryptocurrencies, according to CoinMarketCap. Bitcoin traded 1.4% lower at 1:30 p.m. EST, compared to 24 hours earlier. Ethereum was down 4.7%, Ripple had lost 3.7%, and nine of the 10 largest digital currencies were trading in the red.
At the same time, according to analysis published by Fool, Bitcoin Cash was bucking the trend.
The fourth-largest cryptocurrency, whether you’re counting by market capitalization or by daily dollar volume being traded, gained 21.3% since the same time yesterday.
That’s a sharp change from recent days, where all the big names traded way up or way down — pretty much in unison. Today, most of the cryptocurrency market is bubbling slightly lower as if exhaling after a difficult week. And Bitcoin Cash is just going its own way.
So what’s different about Bitcoin Cash today?
The technical stuff
The currency, which was split off from the good old bitcoin base in August 2017, is rising thanks to three separate pieces of good news.
I’m about to get a little technical here — if you’d rather skip that, keep reading below the coin-obsessed kitten. Just scroll down.
The purpose of creating a new version of bitcoin in the first place was to make the currency more suitable for actual payments rather than buy-and-hold investing. Bitcoin’s transaction fees have been racing sky-high in recent months, even as the completion times for each transaction slowed down. Bitcoin Cash works around these limitations by raising the size limit of each data block from 1 megabyte to 8 MB. This way, the same amount of computing work can handle many more transactions much faster, and with lower built-in fees.
Today, Bitcoin Cash developers are making progress on two proposed improvements to this transaction-friendly cryptocurrency.
First, there’s a 0.25 bitcoin bounty to be collected if you can produce newcomer-friendly instructions on how to extract Bitcoin Cash from offline cryptocurrency wallets. The deadline to collect this digital cash is this Sunday, and one-quarter of a bitcoin is still worth more than $2,000 at today’s prices, so several volunteers are pitching in right now.
This document is desirable to the Bitcoin Cash community for two reasons. The currency would gain instant street cred among security-focused bitcoin users if there were a clear path available toward unlocking the Bitcoin Cash split from their hardware-based crypto wallets. Furthermore, increasing the number of active coins and users can only be good for the currency’s liquidity. That’s important if you want to encourage a healthy ecosystem for Bitcoin Cash payments.
Second, the faster transaction handling comes with security drawbacks, making it easier to trigger “double spend” of the same transaction. Adding notification tools to let the system know when there’s a double-spending issue would go a long way toward eliminating the associated security risks and canceled-transaction slowdowns. A proposal to this effect has been under discussion for a week now, and developers are making headway. Fixing this headache would obviously be good news for Bitcoin Cash users of all shapes and sizes, which in turn makes the currency more useful — and valuable.
Those are the technical tidings. Elsewhere, popular cryptocurrency marketplace OpenBazaar recently added support for Bitcoin Cash and Zcash. The change was made last week, but news can travel deceptively slowly in the breathless cryptocurrency markets, and many users are only hearing about it today. This is an instant adrenaline shot for the coin, because OpenBazaar is a popular software platform for crypto-trading around which many digital exchanges have built their business models. For those keeping score at home, ZCash was trading 5% higher as of this writing.
So Bitcoin Cash just widened its addressable market by a fair bit while the tech gurus behind the scenes made strides toward solving some technical problems with this currency.
That’s how you trigger a 21% jump on an otherwise sleepy market day. It remains to be seen whether Bitcoin Cash can hold on to these gains. The other big boys have active developer communities, too, and the relative gains and losses can whipsaw quickly when another major coin comes up with a big improvement.
Bitcoin Cash’s Bullish Reversal Pushes Crypto Market Cap to $400 Billion
A Hacked article says, Bitcoin cash (BCH) added about $5 billion to its market cap on Thursday, extending its recovery to three days on sellers’ fatigue.
BCH/USD Price Levels
The alternative to bitcoin rose by as much as 40% on Thursday, hitting a session high of $1,343.68. That would have marked the highest settlement in more than a week.
At the time of writing, bitcoin cash was up nearly 30% at $1,246.48 for a market cap of $21.1 billion. When the trading session began, BCH was worth $16.3 billion.
With the latest gain, BCH has rallied more than 70% from its Tuesday low of less than $800. The latest rally attempt has been accompanied by an upsurge in daily trade volume, with transactions climbing 150% over a 24-hour period.
The market turned over nearly $2.2 billion worth of BCH on Thursday, with the OKEx exchange processing more than half of that amount. South Korea’s Upbit and Bithub also accounted for a substantial share of daily transaction volume.
Bitcoin cash continues to hold the no. 4 spot in terms of overall market cap. The digital currency spent much of its early days trading in obscurity, as investors struggled to quantify its true worth. It took a failed launch of SegWit2x in November to drive up the value of bitcoin cash.
The majority of the world’s cryptocurrencies have been reasonably stable during trade today and consolidated after pushing notably higher over the last couple of days.
One crypto, however, has not stopped climbing higher. At present the Bitcoin Cash (BCH) price is up 23% since this time yesterday and 8.4% since this morning at US$1,231 per token according to Coin Market Cap.
This gives the world’s fourth-largest cryptocurrency a market capitalisation of US$20.9 billion.
Following revelations that U.S. regulators have no plans to ban cryptocurrencies, but merely will look to make them safer, trader sentiment has been improving greatly in the industry this week.
And sentiment around Bitcoin Cash has been particularly positive. This is believed to be down to the view that many experts see the altcoin as the heir apparent to the bitcoin (BTC) throne.
As we have discussed many times before, bitcoin has a number of shortcomings which are likely to prevent it from ever being able to be considered as a currency. These include the long processing times and high transaction fees that have materialised as it has scaled.
Bitcoin Cash has been designed in such a way that scalability is not an issue, meaning quick processing times and negligible transaction fees.
And while other altcoins including Ripple (XRP), Cardano (ADA), and Stellar Lumens (XLM) are also able to achieve this, the current flavour of the month with traders appears to be Bitcoin Cash.
Where next for the Bitcoin Cash price?
Whilst I doubt it will be reaching the US$4,053 high it made in late December any time soon, if crypto markets continue to remain positive then it could easily push higher from here.
However, we have seen time and time again how sentiment can shift wildly in a matter of hours.
Because of this, I think investors should stay clear of the industry and continue to watch on from the safety of the sidelines instead.
In the meantime, this next major investment opportunity could be a great place to put your money.