At press time, the bitcoin cash-U.S. dollar (BCH/USD) exchange rate is $1,340. As per data from CoinMarketCap, the cryptocurrency has gained over 9 percent in the last 24 hours.
The gains come after record highs near $2,500 last week, reportedly due to a flow of money out of bitcoin (BTC) and into alternative protocols following the suspension of a controversial plan to alter the bitcoin’s code. However, overbought technical conditions pushed prices back to $1,000 yesterday.
Still, dust now cleared, yesterday’s pullback looks like nothing more than a normal technical correction, given that trading volumes dropped by 42 percent.
Despite the ups and downs, though, the cryptocurrency regained bid tone today, possibly on speculation that a successful outcome for a just-implemented hard fork of BCH may boost the protocol’s appeal as a payment network. Also, a detailed look at the individual markets reveals the rally has been fuelled by Korean exchanges offering BCH/KRW pairs.
That said, the price action analysis indicates some bull market exhaustion, and the downside, if any, is likely to be capped at around $1,000 levels…