Dynamics of trading volume: Examination of bitcoin cash (BCH)
The first and largest cryptocurrency in the world is the bitcoin’s driving force of the global crypto market. However, in the midst of chaos and volatility, another player has been shown to question his dominance – Bitcoin Cash (BCH). In this article, we dive into the dynamics of the volume of trading for BCH and examine why it is worth watching.
What is Bitcoin Cash (BCH)?
Bitcoin Cash is a peer-to-peer cryptocurrency that was created as an alternative to bitcoin. Its aim is to provide faster transaction times, lower fees and increased scalability compared to its predecessor. In May 2017, the Bitcoin community voted for the division of bitcoin into two different cryptocurrencies: Bitcoin Cash and Bitcoin.
Trading volume: Key market activity indicator
The volume of trading is a decisive metric that measures the size of the market and the flow of assets in it. It represents the number of transactions performed per unit time. When traders buy or sell assets, their shops contribute to the total volume of trading, which in turn affects pricing dynamics.
Bitcoin trading volume: key indicator
The volume of Bitcoins’ trading cash (BCH) has been increasing since its inception. According to CoinmarketCap data, the market capitalization of BCH is around $ 17 billion and its trading volume is significantly higher than the volume of bitcoins.
Why is BCH trading volume important?
There are several reasons why the BCH trading volume is significant:
- Volume correlation : Higher trading volumes often correlate with higher prices. This means that when traders buy or sell BCH, their shops tend to print the price up or down.
- Market Sentiment : Strong market sentiment may affect the volume of trading. When a trader thinks BCH is on the rise, he is more likely to increase his purchase activity, leading to higher trading volumes.
- Volatility Prices : Higher Volatility in BCH tends to lead to increased trading volume, as traders respond to price fluctuations.
Historical context: BCH rise
The market capitalization of BCH has grown rapidly over the past year, powered by several factors:
1.
- Regulatory environment : Governments around the world have begun to notice BCH and its potential as an alternative to traditional names.
- Investor interest : Strong technical performance of BCH attracted institutional investors looking for high -return assets.
Key levels of trading volume
Here are several key levels of trading volume that merchants should be aware of:
* High volatility (20 000 – 50 000 BNB)
: This level indicates high market activity and potential price fluctuations.
* Medium volatility (5,000 – 20,000 BNBs) : This level indicates a slight market movement and a balance between purchasing and sales activity.
* Low volatility (<5 000 BNB) : This level indicates low market activity and reduced prices.
Conclusion
The dynamics of the volume of Bitcoin Cash (BCH) trading (BCH) are key indicators that merchants should remember. As BCH continues to gain traction, its trading is likely to remain high, making it an attractive investment opportunity for those who understand the market.
However, it is necessary to remember that market conditions and sentiment can change rapidly. Traders must remain informed about the latest reports, trends and technical analysis to make informed decisions about their investments.
Recommendations
* Long -term investors : Consider holding BCH for a long time as it has potential for continuing growth.
* Short -term merchants : Be careful about high volatility and consider taking a bear or neutral attitude on BCH.