Bitcoin cash was introduced in August 2017, as a result of a fork on the Bitcoin network. Upon the currency’s release, prices rapidly spiked up reaching the $1000 per unit. The market settled down rather quickly, however, and the initial exuberance gave way to selling that fueled significant declines in the market.
Bitcoin Cash spent the next couple of months trading for a few hundred dollars per unit, before seeing a strong move higher that took prices to over $1750 per unit. That level proved to be a near-term high in the market, and prices fell significantly, declining back to under $1000. Prices recovered some ground, however, and then trading relatively sideways for a period of several weeks.
In December of 2017, prices took another run at the $200 level, and the bulls were not disappointed. Not only did prices take out this level, but they made a sustained move sharply higher, eventually reaching over $4000 per unit. This proved to be a near-term high, as the market then saw sharp declines, falling back towards the $2000 level.The price bounced back quickly, however, and it didn’t take long for it to start trading above $3000 again.
The price volatility seen in Bitcoin Cash is nothing unusual for the cryptocurrency market. These markets have shown a tendency to make dramatic moves higher, and then seeing sharp pullbacks. This type of volatility should come as no surprise. Cryptocurrencies have dominated much of the headlines in financial media in recent months, and both speculators and long-term investors have been jumping into these markets to try to grab a piece of the action. One thing is for sure: these instruments are not for the faint of heart.
Price charts can be a very useful tool for those looking to actively trade Bitcoin Cash or for those looking to invest in a Bitcoin Cash IRA for the long-term. Charts provide a simple and clear visual depiction of price action, and can potentially provide clues about where the market could be headed. Charts are often used by traders and investors to try to identify areas of price support and resistance, and to look for areas that may be good buying or selling points. Charts may also be useful for spotting overbought or oversold conditions.
Because these technologies are only in their early stages, it is impossible to say how high prices could potentially climb. Should they become more mainstream and widely accepted, prices could climb significantly from current levels. In addition, Bitcoin Cash is governed by the laws of supply and demand. With rising demand but a limited supply, investors could buy up the available currency, fueling a substantial rise in price.
It is too early to tell if cryptocurrencies could eventually take over for more traditional payment methods. These currencies can, however, offer some major potential benefits compared to more traditional methods. For example, international transactions can be done at a low cost, without the need for currency conversions or the costs associated with wiring funds or paying credit card foreign transaction fees.