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For a cryptocurrency that has already lost 98% from its historical high, bitcoin money – for now – seems brave in the face of a powerful bearish sentiment.
The ABC version of this week's cryptocurrency has increased close to 150% against the US dollar, from around $ 71 to $ 182 over a 7-day time frame. The upward trend came as part of a market-level recovery in which all major currencies reported impressive profits. The bulls in the encrypted space also appeared at a time when the US stock market was in turmoil. Overall, bitcoin cash turned out to be the most profitable resource on a weekly basis, even better than Apple.
Fundamentals of Bitcoin Cash
The last recovery action compensates a maximum of 3% of the total liquidity losses in bitcoin, bringing the total capital erosion down to 95% from the historical maximum. But whether or not to extend the ongoing recovery action clearly depends on two main factors: mining profitability and investor demand.
Since the fork, trades that had suspended trading with the BCH, have now resumed it. In the last three weeks, the BCH volume averages 10k on a daily basis. There have been few cases where the volume has reached the maximum peak of 22k, but at the moment it is not possible to determine whether these figures are artificially inflated.
The profitability of bitcoin money has also improved in recent weeks. After the fork, the hash rate of the currency has decreased significantly, but has made mining operations more profitable. According to the CoinWarz SHA256 index, bitcoin money is more profitable than bitcoin at the time of printing.
What's new in Cash Bitcoin
Bitcoin money recovery does little to offset the losses it faced in November, not to mention the whole year. The bitcoin spincoin has just concluded a so-called hash war with its own clone, nicknamed bitcoin cash satoshi vision or bitcoin SV. Reportedly, both projects have wasted millions of dollars of computing capacity to demonstrate supremacy on one another. Bitcoin cash seemed to win after showing a longer chain than the bitcoin SV, but lost $ 9 billion in market capitalization as collateral damage.
As of now, the cryptocurrency is showing signs of a pullback. Its market performance over a regulated 24-hour time period indicates an aggregate loss of 8% at the time of printing, for CoinMarketCap.com. The pullback recalls the inversions recorded during the previous bullish trends of many bitcoins. For example, between September 30 and November 2, assets recovered by almost $ 222, after which they collapsed further to set new lower lows.
Overall, bitcoin liquidity recovery does very little to restore investor confidence in cryptocurrency. A more provisional bullish retirement scenario hopes to be established once the price exceeds its MA of 50 periods on the daily chart. Until then, the probability of a double background training lingers on the BCH market.
Shutterstock foreground image. TradingView Charts.
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