Room for More? Bitcoin Cash Defends $300 Amid Competition

The markets appear to be showing appetite for multiple forked versions of bitcoin, or so the bitcoin cash price would suggest.

Oct 25, 2017 at 3:30 p.m. UTC
Updated Sep 13, 2021 at 7:04 a.m. UTC
CoinDesk Insights

Is the market big enough for two forked bitcoin currencies?

Early indications suggest so, as bitcoin cash is alternating gains with losses by trading in a tight range so far on Wednesday. At press time, the bitcoin cash-US dollar (BCH/USD) exchange rate is $328. As per CoinMarketCap, the cryptocurrency has lost just 2 percent in the last 24 hours.

Still, the lack of price movement may be encouraging for supporters.

BCH has stubbornly defended the $300 mark even amid the noise surrounding this week's bitcoin hard fork and the creation of another rival project – bitcoin gold – that adopted a same go-to-market strategy. For more than two weeks, dips below $300 have been quickly undone, still, a more sustainable break above $350 levels remains elusive.

More broadly, the cryptocurrency did rally above $400 on Oct. 17, largely on the back of a surge in Korean trading volumes. However, the spike was short-lived as prices fell back to $300 in the subsequent days.

It seems BCH is waiting for a stronger catalyst, and it could find some love if the conflict over bitcoin ahead of the Nov. 16 SegWit2x hard fork forces investors to switch out of BTC or diversify their holdings.

But while BCH waits for a stronger catalyst, the price action analysis anticipates better days ahead for the cryptocurrency.

BCH/USD daily chart

BCH/BTC daily chart

Fidget spinner via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
First Mover Asia: USDC Hasn’t ‘Flippened’ USDT, but Trader Preferences Are Changing; Cryptos Rise Despite Bearishness

A Glassnode analyst suggests the collapse of the UST token has triggered a change in investors' stablecoin preferences; bitcoin holds above $30,000.

A Glassnode analyst suggests the collapse of the UST token has triggered a change in investors' stablecoin preferences; bitcoin holds above $30,000.

2
Musk Sets New Condition for Twitter, Citi Says Terra’s Fallout Unlikely to Hit Wider Financial System

The most valuable crypto stories for Tuesday, May 17, 2022.

The most valuable crypto stories for Tuesday, May 17, 2022.

3
Market Wrap: Cryptos and Stocks Mixed Amid Bearish Sentiment

BTC is stabilizing around $30K while stock market volatility begins to fade.

BTC is stabilizing around $30K while stock market volatility begins to fade.

4
New Data Shows Underground Bitcoin Mining Thriving in China

The U.S. has also expanded its lead in the global hashrate competition.

The U.S. has also expanded its lead in the global hashrate competition.