Bitcoin Cash Suffers From Steep Price Drop

BCH prices remain volatile, consistent bad track records

We do not need a Technical Analysis here to see that Bitcoin Cash price has doubled within the past 4 days and going for a steep drop today. The spike could be due to announcements of an upcoming Hard Fork once again for Bitcoin Cash scheduled for May 15 (source: Finance Magnates - Rachel McIntosh). The steep drop has been attributed to "Price corrections" resulting in a 15 percent decrease in prices. More about the price correction can found in the article at The Merkle - JP Buntinx.

Image source: coinmarketcap.com - BCH

Bitcoin Cash High Trading Volume Is Major Concern
What I observed here is the massive BCH/USDT trading on both OKEx and Huobi exchange. Both exchanges are active in China and what worries me most is the pump-and-dump that could continue to occur. USDT is the stablecoin where traders can quickly buy or sell cryptocurrencies on exchanges. Such moves could be manipulative on BCH prices when it drops further or experiences sudden spikes.

Bitcoin Cash is already in hot water even though just launching from Bitcoin's Hard Fork in August 2017. There have been allegations of pump-and-dump as well as insider trading within Coinbase a few months ago when "Suspicions arose when the price of Bitcoin Cash arrived at $8,500 on Coinbase-affiliated exchanges while being around $3,500 on all others." (Source: Finance Magnates - Simon Goldstein)

Image source: coinmarketcap.com - BCH Exchange

Experts are in favor of Bitcoin over Bitcoin Cash
When Fundstrat Global Advisors co-founder Tom Lee speaks up, we listen.

“But if I were putting new money to work today - a fresh dollar - I would be a lot more interested in buying a laggard that could attract inflows as opposed to something that’s already potentially overbought.” Lee said.
Source: cointelegraph.com - William Suberg

I am not convinced that Bitcoin Cash could become a new alternative for payments, as BCH prices are just too volatile. It is also very unpredictable for small investors to start investing into BCH. When prices go up, you will be unsure whether to HODL or sell your BCH. I was just complaining to @bobcastleman on his posts about the sudden Bitcoin Cash spike two days ago: @bobcastleman/bitcoin-cash-explodes-time-to-take-some-profits

I will stay away from Bitcoin Cash, for now.

-tysler

Image source: pixabay