E Bitcoin Cash Prices Consolidate; Await Direction

Bitcoin cash prices ended much unchanged for the past week as the cancellation of trading of BCH on GDAX, though temporary, and the fact that the user experience continues to face difficulties, has added to the pressure on the prices so far. The BCH prices have not been able to see the buoyancy that has been seen in the prices of other altcoins which have largely benefited from the lack of volatility and the end of the bullish run in Bitcoin prices..

This consolidation phase in the Bitcoin market has pushed speculators and short term traders into the altcoin markets such as IOTA, Cardano and Stellar Lumens but BCH prices have generally largely remain unchanged. Last week, it seemed that the prices would get a boost following the introduction of Bitcoin Cash (BCH) trading in the large exchange, GDAX, but that turned out to be a false move as the trading was stopped at that exchange quite soon due to issues with the technology and doubts on whether the trades were being manipulated.

But that is likely to be a temporary problem as GDAX has announced that it would resume BCH trading on January 17 and when that happens, the BCH market is likely to draw in a lot more traders which would increase the volatility and likely push it higher. BCH is expected to be one of the chief beneficiaries of the issues with the bitcoin network which has slowed it down considerably in recent times. Though the BCH network also has its own set of issues, these are expected to be handled in a quick and efficient manner and get better as the time rolls on.


 

Prices Likely to Move Higher

On the technical front, prices have been kept below $3000 due to all these developments and currently we are seeing some consolidation in the prices of BCH which is likely to last for a day or two. As mentioned earlier, we expect to see a lot more volatility in the days to come and once the volatility increases, we are likely to see this consolidation translate itself into a bullish phase which should carry the prices back towards the $3000 in due course of time. There, the bulls are likely to face a challenge with a lot of selling happening in that region and we doubt that this region would be broken in the short term.

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Currency Trader 2 years ago Member's comment

Good read.