The market has taken another casualty today. Finally, we have seen Bitcoin Cash tumble below $1,000.00 into figures not seen since the middle of April.
During April, Bitcoin Cash made incredible progression during the mid-April market surge, progression which saw it break free from the path of Bitcoin and take up new heights on its own. Prior to the surge, Bitcoin Cash seemed to remain steadily at 10% of the value of Bitcoin. When Bitcoin hit $7,000.00, Bitcoin Cash remained at $700.00. The surge in April however saw Bitcoin Cash move on from this imprisonment. Leading up to a period in time where we almost saw Bitcoin Cash hit $2,000.00.
As the market downfall took over, Bitcoin Cash remained resilient. This was down to a pending hard fork through Bitcoin ABC, designed to increase the scalability and the block size of the blocks on the Bitcoin Cash blockchain. The fork, was carried out successfully and thus, allowed Bitcoin Cash to balance at around $1,200.00. Now though, with the hype behind the fork passed us, Bitcoin Cash has finally fallen victim to the impact of this market depression.
At the time of writing, Bitcoin Cash is valued at $975.99, down 7.70%. Overall, this retreat below $1,000.00 may very well see Bitcoin Cash struggle to move upwards beyond this point for some time now. Moreover, Bitcoin Cash is now as risk of falling into the trap set by Bitcoin. What I mean here is that, should Bitcoin Cash reach a value of around 10% the value of Bitcoin, we may see Bitcoin Cash move back into Bitcoins shadow, meaning that for the time being, it will consistently remain as a 10% portion of the Bitcoin value.
Just as Bitcoin Cash finally grew the momentum to take Bitcoin on, we are seeing the rise of this currency fall back down, in an unfortunate turn of events.
What next for Bitcoin Cash?
Well of course, we could see this blip, rectified. Hopefully this will be the case. Moreover, if Bitcoin Cash stays out of the Bitcoin shadow, we might very well see Bitcoin Cash make a recovery far quicker than expected. At the moment, a move up towards $1,000.00 would be ideal. If we see this target reached over the next few days then we can have some confidence that the currency still has the ability to move, independent of Bitcoin. If it does fall down though, Bitcoin Cash will see resistance going forward.
For now, we should wait and see what happens. Of course, Bitcoin Cash is influenced by the overall market, so until the markets tun around, this decline is sure to continue.