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The latest wave of bullishness has favored many cryptocurrencies including Bitcoin Cash which is one of the OGs in the market. However, the lack of organic growth drivers highlights some uncertainty about their performance in the future.
Bitcoin Cash has had an impressive performance in the last three weeks during which its price has almost doubled. It is currently trading at $602.47 after dropping by 2.89% in the last 24 hours but its weekly performance stats indicate that it is still up by more than 12% despite light value shed. It peaked at $649 earlier today and the slight pullback reflects the state of the overall crypto market which is down 1.30% in the 24 hours.
Although the market has been rallying, Bitcoin Cash’s trading volume has been significantly lower than its trading volume during the previous bull run which ended in May which means the current bull run is not as strong as the previous one. This is also supported by the fact that it has so far failed to rally back above its 99-day moving average despite closing in on that level. However, it will likely break above the 99-day MA if the bulls maintain their dominance.
Why is Bitcoin Cash falling today?
As noted earlier, Bitcoin Cash has been rallying because crypto investors have been bullish for the last three weeks. It has been moving in tandem with the overall market direction and its current price action has been cooling off just as the overall market has been experiencing some correction. The current move might have been influenced by yesterday’s reports about the massive crypto hack through which $600 million worth of cryptocurrencies was stolen.
The massive amount of stolen digital currency qualifies it as the biggest crypto hack in history. Such news was bound to cause a bit of panic selling in the market, thus the market’s current direction. It might also be because of the results of the senate’s failure to unanimously vote for a proposed crypto amendment to the Infrastructure bill. The amendment would have clarified the contentious use of the term “broker” in the proposed bill designed to draw out clear cryptocurrency regulation.
Will Bitcoin Cash Argentina have an impact on the price?
Bitcoin Cash would have experienced a more pronounced bull run if it had some favorable organic news such as market adoption and utility news. However, the activities of a non-profit organization called Bitcoin Cash Argentina might be the catalyst needed to pump more utility into BCH. The organization has embarked on a mission to spread awareness about BCH and encourage more adoption in Argentina
The foundation recently used Flipstarter to crowdfund a circular economy campaign and it has plans to facilitate the adoption of BCH by 250 merchants in the country in the next few months. Such adoption would allow BCH to be used for transaction purposes, and such milestones might make the cryptocurrency more attractive.
More adoption would likely fuel better price action for BCH. So far the cryptocurrency is still considered undervalued considering its previous highs and another major bull run will likely result in some more gains. However, market uncertainties also mean it might also test lower price levels once again if another market correction takes place.
