The dynamics of trade volume: exploring bitcoin cash (Bch)
As the world’s first and largest cryptocurrency in the world, Bitcoin has been a driving force behind the world cryptocurrency market. However, in the midst of chaos and volatility, another player has emerged to challenge his domain: Bitcoin Cash (BCH). In this article, we will deepen the dynamics of the volume of trade for BCH and explore why it is worth seeing it.
What is Bitcoin Cash (Bch)?
Bitcoin Cash is a peer cryptocurrency that was created as an alternative to Bitcoin. Its objective is to provide faster transaction times, lower rates and greater scalability compared to its predecessor. In May 2017, the Bitcoin community voted to divide Bitcoin into two different cryptocurrencies: Bitcoin Cash and Bitcoin.
Commercial volume: a key indicator of market activity
The negotiation volume is a crucial metric that measures the size of a market and the flow of assets within it. Represents the number of transactions executed per unit of time. When merchants buy or sell an asset, their operations contribute to the volume of general negotiation, which in turn affects prices dynamics.
Bitcoin cash volume: a key indicator
The negotiation volume for Bitcoin Cash (BCH) has increased constantly since its inception. According to Coinmarketcap data, BCH market capitalization is around $ 17 billion, and its negotiation volume is significantly higher than Bitcoin.
Why is the BCH negotiation volume important?
There are several reasons why BCH’s negotiation volume is significant:
- Volume correlation
: higher commercial volumes are often correlated with higher price movements. This means that when merchants buy or sell BCH, their operations tend to raise the price up or down.
- Market feeling : The strong feeling of the market can influence negotiation volumes. When a merchant thinks that BCH is in an upward trend, it is more likely to increase its purchase activity, which leads to greater commercial volumes.
- Price volatility : greater volatility in BCH tends to lead to a greater negotiation volume, since merchants react to price changes.
Historical context: The emergence of Bch
BCH market capitalization has grown rapidly during the past year, promoted by several factors:
- Increased adoption : As more merchants and companies begin to accept BCH as a payment method, the demand for IT increases.
- Regulatory environment : Governments around the world have begun to realize BCH and their potential as an alternative to traditional currencies.
- Interest of the investor
: BCH’s strong technical performance has attracted institutional investors looking for high performance assets.
Key negotiation volume levels
Here are some key levels of negotiation volume that operators must take into account:
* High volatility (20,000 – 50,000 BNB) : This level indicates a high market activity and potential price swings.
* Average volatility (5,000 – 20,000 BNB) : This level suggests a moderate market movement and a balance between the purchase and sale activity.
* Low volatility (<5,000 BNB) : This level indicates low market activity and reduced price movements.
Conclusion
The dynamics of commercial volume for Bitcoin Cash (BCH) are crucial indicators that operators must take into account. As BCH continues to win traction, it is likely that its commercial volume remains high, so it is an attractive investment opportunity for those who understand the markets.
However, it is essential to remember that the conditions and feeling of the market can change rapidly. Merchants must remain informed about the latest news, trends and technical analysis to make informed decisions about their investments.
Recommendations
* Long -term investors : Consider keeping BCH in the long term, since it has potential for continuous growth.
* Short -term merchants : Be careful with high volatility and consider adopting a bearish or neutral posture in BCH.
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