Crypto Prices Plunge – How Does Bitcoin Cash Compare?
What seemed like a recovery for languishing crypto markets is now officially over. The markets never found sufficient volume to carry prices above recent price ceilings. Key support levels were challenged as Bitcoin and the altcoins headed once more for recent lows.
But what about individual cryptocurrency projects? Our present digital currency market is still dominated by Bitcoin. Bitcoin is the household name, and when the price of BTC suffers, so do most other cryptocurrencies.
This pattern typically does not take into account the merit (or lack thereof) of individual cryptocurrencies. To understand the situation a bit better, let’s look at some common themes among coins other than Bitcoin. We’ll also try to decide if these lows might represent a good time to buy Bitcoin Cash (BCH) and other altcoins.
Altcoins in the Red
Today’s biggest losers are Cardano, Walton, and ICON (losing 8.6%, 7.7%, and 7.4% in 24 hours respectively). At $0.073, Cardano is down from $0.105 just over one week ago. Upward action from several alts (Dogecoin up 13.2%, Metaverse up 1.95%) may indicate that this recent drop has found a floor. But 24 hour losses are still the norm; only a few are exempt.
The consensus among analysts seems to be that recent disappointment regarding Bitcoin ETF rejections has sapped recent market sentiment of optimism. With investors cautious, or quick to jump to the safety of fiat, there was insufficient volume to sustain the minor bull run of early September.
How Does Bitcoin Cash Compare?
Bitcoin Cash’s 24 hour loss of 4.74% is par for the course. The price of BCH is down 81.6%, Year to Date. The question for new investors is: Is BCH’s loss of value due to problems with Bitcoin Cash, to the crypto markets in general, or both?
Bitcoin Cash’s Conundrum
Bitcoin Cash (BCH) is a hard fork of Bitcoin, one which aims to solve problems that have made Bitcoin expensive and slow. Bitcoin Cash’s larger blocks and auto-adjustable difficulty level allow it to deliver transactions faster, in some cases, than Bitcoin. Some of this is due, however, to Bitcoin Cash simply processing less traffic. Many more people use and learn about Bitcoin, after all, so delays are to be expected.
Bitcoin Cash is also controversial among crypto investors, some of whom believe its very existence to be a disingenuous plot against Bitcoin. BCH adoption, in this environment, has been slow and steady. With the market in disagreement about the coin’s true value, enthusiasm has been lacking to make Bitcoin Cash an exception to recent market price declines.
Bitcoin Cash Prices (BCH/USD)
Bitcoin Cash prices sit at $466.03. BCH had seen strong support in the $473.9060 – $500 support zone as soon as last week. Falling beneath this threshold doesn’t bode well for Bitcoin Cash, as $400 is the next significant support line, with subsequent support lines in $100 increments beneath that.
All of this is not to say that Bitcoin Cash cannot recover. But until Bitcoin recovers, or the market decouples from Bitcoin, Bitcoin Cash prices are likely to be subject to larger forces. If Bitcoin Cash can produce news to differentiate it from other red altcoins in this persistent bear market, the slate could be wiped clean. Until then, we don’t expect BCH’s performance to deviate from overall market trends.
*Information in this article should not be taken as investment advice.