After testing new yearly lows, bitcoin cash staged a modest relief rally on Wednesday as several virtual currency exchanges re-enabled BCH trades for the first time since last week’s hard fork. However, the relief rally shouldn’t be construed as a shift in direction as BCH remains severely hampered by resistance and is likely to continue lower in the short term.
The BCH price is currently trading at $230, where it was down 5.3% on the day. The fourth-largest cryptocurrency by market cap touched an intraday high of $254, according to aggregate pricing data provided by CoinMarketCap. The coin briefly fell below the $200 price floor during the previous session, setting a new all-time low.
The BCH price quoted on CoinMarketCap reflects the latest pricing data for bitcoin cash ABC, the primary implementation of last week’s hard fork. The bitcoin cash ticker page on CoinMarketCap provides the following disclaimer.
“In order to reflect the current market, we have merged our Bitcoin Cash (BCH) and Bitcoin Cash ABC (BCHABC) listings. We have observed that a majority of exchanges are using the Bitcoin Cash (BCH) to refer to the Bitcoin Cash ABC implementation.”
On that basis, the primary chain of bitcoin cash has a total market cap of $4.1 billion. Daily trade volumes exceeded $103 million, which is equivalent to roughly 23,045 BTC at current prices. Binance is the largest market for BCH trades, processing more than a third of transactions via BTC and USDT as the quote currencies.
Hash War Rages On
The battle for control of the bitcoin cash network has continues this week, costing miners millions in lost revenue. With no clear end in sight, the hard fork competition will remain a considerable source of risk for cryptocurrency traders for the foreseeable future.
According to BitMEX, a popular cryptocurrency derivatives platform, the Nov. 15 chain split has already cost bitcoin cash miners $6.1 million in gross revenue. (Interestingly, BitMEX has seen a large upsurge in trading volumes over the past week as traders continue to short bitcoin through the futures market.) With numbers like these, it’s reasonable to assume that a large share of newly mined BCH will be sold regardless of how the market perceives the ABV/SV chains.
Data from Hashwar.live shows a neck-and-neck race between the rival chains. Although bitcoin cash ABC came out strong last week, the community behind SV has vowed to play the long game. Craig Steven Wright, the most vocal supporter of the so-called “Satoshi Version,” tweeted the following statement on the day of the fork:
“Just a reminder
Not a day, not weeks, not a burst.
Continuous competition until one dies as we do not stop”