For a cryptocurrency which has dropped 98% from its all-time high already, bitcoin cash for now is looking grave in the face of a powerful bearish sentiment.
The cryptocurrency's ABC version this week surged close to 150% against the US$(Dollar), from about $71 to $182 on a 7 day timeframe. The uptrend came as a part of a market-wide recovery in which all the leading coins posted impressive profits. The bulls in cryptospace also appeared at a time when the US stock market was plunging hard.
Overall, bitcoin cash turned out to be most profiatable assets on a weekly basis, even better than Apple stock.
BITCOIN CASH FUNDAMENTAL:
The latest recovery action at most compensates 3% of the total bitcoin cash losses, bringing the total capital erosion to 95% since all time high. But whether or not it would extend the ongoing recovery action clearly depends on two major factors: mining profitability and demand from investors.
Since the fork, the exchanges that had paused BCH trading have now resumed it. In the last three weeks, the BCH volume rates is averaging at 10k on a daily basis. There have been few instances in which the volume has peaked as high as 22k, but whether or not these figures are artificially inflated remains unverifiable at present.
The coin mining profitability of bitcoin cash has also improved in recent weeks. After the fork, the coin's hash rate dropped significantly, but it has made the mining operation more profitable.
WHAT'S NEXT FOR BITCOIN CASH
The bitcoin cash recovery does very little to compensate for the losses it faced in November, let alone the whole year. The bitcoin-spinoff just concluded a so-called hash war with its own clone , dubbed bitcoin cash satoshi vision, or bitcoin SV. Both the projects reportedly wasted millions of dollars worth of computing power to prove supremacy over each other. Bitcoin cash appeared to win after proving a longer chain than bitcoin SV but lost $9 billion market capitalization as collateral damage.
As of now the cryptocurrency is showing signs of a pullback. Its market performance ao an adjust 24-hour timeframe in noting an aggregated 8% loss at press time, per CoinMarketCap.com. The pullback resembles the reversal noted during many of bitcoin cash's previous trends. Between September 30 and November 2, for instance, the assets had recovered by almost $222, afyer which it plunged to establishnew lower lows.
Overall, the bitcoin cash recovery does very little to reinstate the investor's faith in the cryptocurrency. A more interim bullish bias scenario is hoping to be established once the price crosses above its 50 period MA on the daily chart. Until then, the likelihood of a double bottom formation lingers over the BCH market.