Take a look at Bitcoin Cash price in this chart. Nice pump indeed, but what's interesting, I believe that this one has a very specific reason.
I believe that this one was made by the miners.
They exactly knew when the BCH mining difficulty will drop. They knew, that once this happens, they will be able to mine Bitcoin Cash 3 times faster than Bitcoin. In order to maximize their profit, they did everything they can to pump the BCH price.
But there is a problem.
In 3 days and 19 hours (and this gets shorter with each new block) the difficulty will rise by over 200% - which will make again BCH not profitable to mine compared to BTC.
This will not be good for the BCH price, as it's in a steady decline now at $684.
My opinion: I know that many believed that BCH is the new, better Bitcoin but there were many copies of BTC before that stated the same. This one has much better PR which allowed the miners to make a great profit on people that believed in it, bought it at $900 and are still buying it at $680.
But once the profitability will drop, I think it will return to around $300-$400 levels and then slowly decline from there. It will be a great pump and dump coin though.
Please not that it's just my opinion, probably the safest strategy now is to hold both BCH and BTC to see which one will win.
See you next time!
It will be interesting to see what happens when the mining adjustment happens.
I'm not sold on either Bitcoin at this point, which is unfortunate, as I have been sold on Bitcoin for many years. I think BCC is a better Bitcoin, but the market already has a lot of better Bitcoins...and BCC is late out of the gate.
Agree with your trading recommendation.
I thought the market was just responding to the flood attack and the way the bigger blocks proved they could clear the higher transaction load quite quickly. Mind you, there is every chance that it was deliberately intended to show off the BCH capability so it could well have been part of the pump.
While it is clear the price went excessively high, exuberant action - I dont think we can assume its a pump and dump. Have to see volume dumping or buying to decide whats next in this range
Remember that often whales/bots trade with themselves to create the volume and drive the price in desired direction.
sure, there are tons of conventional tricks going on but there was a lot of a legitimateaccumulation and we haven't seen any real dumping... yet
nice post
Anyone tell why my reply go on color change to red.
Is my writing word "great-nice post- thanks-etc" wrong.
Why any steemian do this if any problem says me personally
Of course this is not sustainable, I have a good sense about these things and this has whale-manipulation written all over it... My advice, stay away from BCH for a while
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