Bitcoin Cash Is up 84% in Two Weeks in What Some Claim to Be a Dead Cat Bounce

Francisco Memoria

Bitcoin Cash (BCH), a cryptocurrency created through a hard fork of the Bitcoin (BTC) network in August of last year, has been rising at an impressive pace in the last few days, and is currently up over 85% in the last two weeks.

According to CryptoCompare data, BCH went from a $74 low to nearly $230 in only a few days, and has since seen its price drop back down to $196, where it’s trading at press time. The cryptocurrency has notably dropped about 98% from its all-time high of $4,000 before this recent rally.

Bitcoin cash's price in the last month

What’s behind BCH’s recent recovery is currently unclear. The cryptocurrency fell along with the rest of the market but is currently outperforming the rest of the market. Earlier this year BCH went through a hard fork that led to the creation of Bitcoin Cash Satoshi’s Vision (BSV), and a ‘hash war’ that some analysts believe has taken its toll on the cryptocurrency ecosystem.

The rise also comes at a time in which the equities market has been seeing repeated sell-offs. Since the beginning of the month the S&P 500 Index has lost over 11% of its value over rising interest rates and the threat of slower global growth. Some crypto enthusiasts believe cryptocurrencies can be used to hedge against wider market failures, and as such the crypto’s value may be growing.

Still, some claim that BCH’s rise appears to be a dead cat bounce, meaning it’s merely a temporary recovery that’s set to be followed by the downtrend’s continuation. In a Bloomberg op-ed article Lionel Laurent argued the cryptocurrency – along with BTC - may not recover from this year’s bear market.

The slight bounce after a catastrophic year is probably to be expected, but may not be sustainable. One still can’t rule out that these particular crypto-cats are dead.

Peter Brandt, an ‘old school’ trader who called bitcoin’s 84% decline this year, warned the cryptocurrency’s recent rally to little over $4,000 could be a dead cat bounce, in which case its next target would be the $1,200 mark.

Some have also claimed Bitmain, which is said to own one million BCH, is artificially pumping the cryptocurrency’s price to look more appealing to investors. This, after sources recently claimed the Hong Kong Stock Exchange was unlikely to approve its initial public offering (IPO).

Crypto Market Update: Focus on BTC, ETH, BCH, BNB, XMR, and DASH

Siamak Masnavi

This article provides a quick overview of how the crypto markets have been doing—with the focus on Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Binance Coin (BNB), Monero (XMR), and Dash (DASH)—over the past 24-hour period.

Overall, September 17th is proving to be a bit of a mixed day, with 12 of the top 20 cryptocurrencies (by market cap) in the red at press time (around 06:25 UTC).

BTC-USD

BTC-USD 24 Hour Chart - 17 Sep 2019.png

The bad news is that are still waiting for the launch of Bakkt's physically-delivered daily and monthly Bitcoin futures contracts. So, Bitcoin is still trading mostly sideways, hovering around the $10,300 mark. The good news is that the launch is expected to take place in less than one week (i.e. on September 23), as was confirmed by this tweet that Bakkt sent out on September 16:

ETH-USD

ETH-USD 24 Hour Chart - 17 Sep 2019.png

The Ether (ETH) price continues its upward movement toward the $200 mark, up another 2.24% in the past 24-hour period (making it up 4.32% in the past 7-day period). What may have helped the Bitcoin price yesterday (September 16) is the announcement by crypto payment processor BitPay that in the near future it will be possible for its customers to accept Ether payments for purchases of goods and services. Also, the BitPay wallet will support Ether.

Ethereum co-founder Vitalik Buterin had this to say about the news:

"It is exciting to see BitPay leading the way in integrating Ethereum into global payment systems. This truly opens up a new world of possibilities for the Ethereum ecosystem, and together we can continue to be a leading innovator for real world use cases for cryptocurrencies.

BCH-USD

BCH-USD 24 Hour Chart - 17 Sep 2019.png

On Monday (September 16), Bitcoin.com announced that it had entered into a strategic partnership with Taiwanese smartphone manufacturer HTC, as a result of which the Bitcoin.com wallet will come preinstalled on HTC's current and upcoming blockchain phones (Exodus 1 and Exodus 1s):

BNB-USD

BNB-USD 24 Hour Chart - 17 Sep 2019.png

Although BNB is currently in the red, this may change during the next several hours once all of the six mini announcements that Binance plans to make today have come out:

The first of the six announcements that Binance CEO Changpeng Zhao (aka "CZ") referred to is the addition of support for Cosmos (ATOM) to Binance's Margin Trading platform:

XMD-USD

XMR-USD 24 Hour Chart - 17 Sep 2019.png

OKEx Korea announced on Monday (September 16) that it intends to delist all five privacy coins it is currently supporting, i.e. XMR, DASH, ZEC, ZEN, and SBTC, due to concerns that these cryptocurrencies do not allow it to implement FATF's so-called "travel rule". 10 October 2019 is the date on which transaction (i.e. trading) support ends.

DASH-USD

DASH-USD 24 Hour Chart - 17 Sep 2019.png

Since OKEx Korea's delisting announcement mentioned DASH, you would expect it to be down today, just like XMR. However, it is not, and that is very likely due to the fact that today (September 17) is the day that trading in DASH is expected to start on Coinbase Pro on/after 09:00 PST (16:00 UTC) provided that there is sufficient liquidity.

Featured Image Court: Photo via Pixabay.com