Why Bitcoin Cash [BCH] investors shouldn’t expect profits anytime soon
The market capitalization of the entire cryptocurrency market has declined by about 5% since the month started. The current as of 27 August stands at $944.9 billion.
Moreover, the general market decline has led leading coins like Bitcoin [BTC] and Ethereum [ETH] to post double-digit declines in the last 26 days. Sharing a significant positive correlation with BTC, Bitcoin Cash [BCH] has been impacted by the general market downturn.
As of 15 August, BCH traded at $145.92, having grown by 40% 30 days prior. As of this writing, the altcoin exchanged hands at an index price of $117.05, posting a 24% decline in the last 12 days.
In the last 24 hours, the coin had dropped by 8%, data from CoinMarketCap revealed. Although trading volume was up by 42% within the same period, the disparity between price action and trading activity indicates buyer’s exhaustion. This may occasion a further price drawdown.
The readings of BCH’s price movements on a daily chart did not tell a good tale either. Since 19 August, investors have gradually reduced their BCH holdings. The uptick in coin distribution sent key indicators – Relative Strength Index (RSI), Money Flow Index (MFI), and Chaikin Monkey Flow (CMF)- below their respective neutral spots.
As of this writing, the RSI was 40. The coin’s MFI was 39, while its CMF was -0.20. A reading of the positions occupied by these indicators was that buying pressure for the BCH token had dropped in the past few days.
Source: TradingView
The count of unique addresses that have traded BCH coins has declined since 15 August. According to Santiment, daily active addresses on the BCH network stood at 16,400 addresses at press time. It fell by over 71% decline in the last 12 days.
As for transaction volume on
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