Bitcoin Cash may be the star of this month as the price of the digital currency has continued to see positive movement as the network plans for a November 15 hard fork.
Bitcoin Cash which is currently trading at $556 seems to be the catalyst of the recent positive movement in the coin market having made consistent gains in the past several days.
By Sunday morning, the coin was exchanging hands at $535. This after the previous day 12 percent appreciation in which the coin moved up to $477 from $425.
The main factor driving the surge in price is the brokerage between Coinbase and the Bitcoin Cash ABC which has been reported to be the biggest deal between Coinbase and any digital currency. The ABC team is the original developers of the Bitcoin Cash code.
According to the Coinbase team,
“Twice a year, the Bitcoin Cash (BCH) network hard forks as part of scheduled protocol upgrades. The next BCH hard fork is scheduled for Nov 15, 2018, and Coinbase is prepared to support the published roadmap from bitcoincash.org.”
In the past five days, BCH has quintupled its trading volume even as the demand for the coin led to the spike in price.
That the recent price movement is accompanied by a boost in trading volume is remarkable, not even Bitcoin has seen great increase in trade volume in recent months.
From November 1st to 6th, Bitcoin Cash has seen volume increase from $200 million to $1.4 billion. This has surpassed that of XRP which had its volume surge to $1.3 billion by mid October after the announcement that Ripple Labs was partnering with a major bank.
Banco Santander planned to utilize Ripple products in its new banking app. The partnership was an adoption tool for XRP and no doubt boosted the market confidence in the cryptocurrency.
With the recent performance of BCH, it has surpassed the October accomplishment of XRP and November 15 fork is still a week away.
It is obvious that many investors want to get as much of the digital currency as they possibly can so that they benefit from the upcoming hard fork which will give holders of BCH the equivalent value in the new coin.
Nchain is led by the controversial Craig Wright who once claimed that he is Nakamoto Satoshi, the Bitcoin inventor. The divergence in governance of the BCH network has led to the upcoming fork. There are indications that more forks of the Bitcoin Cash protocol is on the way.
There has been a marked market activities in the past 24 hours with coins such as Ethereum, Litecoin and BCH gaining more than 5 percent. There are signs of recovery for the general market although it is not clear how sustainable this will be.
Bitcoin is trading above $6,400 while Ethereum is above $200 at $210 having broken the $200 resistance. However, Bitcoin is realistically still trading sideways until it breaks the $6,800 mark considered the major resistance.
Josh Rager, a technical analyst posited that more sideways movement is expected for Bitcoin in November. He stated that more volatility is to be expected within this period as well.
“Historically, we haven’t seen Bollinger Bands squeeze this tight over the past two years. This means upcoming volatility with price action. But, we saw the same squeeze in 2016 which lasted a month, be prepared for possible slow sideways movement through November.”
Hsaka, a crypto trader echoed a similar sentiment, to him BTC will have a hard time breaking the $6,800 resistance in coming weeks.
“To be honest, with volume and volatility petering out, I wouldn’t be surprised to see BTC hold this range for another month (and maybe till the EOY too). Would be the path of maximum pain, bears don’t get their rapid selloff to 4.8k, bulls distraught over not being able to break 6.8k.”