Bitcoin Cash Is Up, But Correction May Be On Cards
Despite decent gains today, bitcoin cash prices could take a hit in the short-term, the technical charts suggest.
As per data source OnChainFX, bitcoin cash (BCH) has appreciated 9 percent in the last 24 hours. The cryptocurrency is strongly bid above $2,700, yet is still down 35 percent from its record high of $4,330 set on Dec. 20.
Likely driving that rally, an automatic adjustment in bitcoin cash's Emergency Difficulty on Aug. 9 last year, reportedly made mining the cryptocurrency more profitable. Also, as bitcoin (BTC) neared the $20,000 mark in December, investors began diversifying into the "small cap" cryptos like bitcoin cash.
Thus, to some extent, BCH has an inverse relationship with bitcoin. And with BTC on the rise again, the BCH/BTC chart indicates that bitcoin cash is likely to underperform its rival in the short-run.
LKN | The main cryptocurrency market news agency, outlet that strives for the highest journalistic standards. If you want to prove yourself and show your experience and knowledge, please contact us: firstname.lastname@example.org