92 Interactions, 6 today
On Tuesday, Bitcoin’s price fell below $30k for the first time since June. The market was thrown into disarray as a result of this drop. However, thanks to the hype surrounding the B Word conference, the king coin quickly recovered and was trading just under $32k at press time. To put it in the words of Changing Zhao of Binance, “The market likes to play with our emotions.” The 6.2 percent increase in Bitcoin over the last 24 hours was well reflected in the one-day RoI of most alts. In fact, thanks to Bitcoin, 95 of the top 100 coins were trading in the green at the time of writing.
The story of Bitcoin Cash was no different. Over the same time period, the twelfth-largest cryptocurrency saw a 7% increase and was trading at $421.82. What’s more, over the past week, the alt’s correlation to Bitcoin further intensified. Notably, at the time of writing, the same shared a value of 0.96. This makes it quite evident that BCH’s price movement is, by and large, tied to the king coin.
Like BTC, are HODLers accumulating BCH too?
The average coin age of Bitcoin Cash has risen dramatically in recent weeks. This metric, in particular, displays the average number of days that all BCH tokens have remained in their current addresses. The current ascending slope indicates a network-wide accumulation trend.
BCH has arguably been mirroring Bitcoin’s accumulation trend. In fact, at the time of publication, the mean coin age for BCH was 1197.74, while the same for BTC was 1181.48.
Are traders doing their job?
Owing to the not-so-volatile price environment of Bitcoin, the number of traders associated with it has nearly halved itself over the past few months. To quantify, the number of active traders that stood at 5 million in March had fallen to merely 2.9 million at press time.
However, as far as BCH is concerned, the number of active traders has consistently been rising over the past few months (depicted in the chart above). In March, for instance, the network had merely 365k traders while the same for this month stood at 818k.
Additionally, Santiment’s chart pointed out that the number of active addresses on BCH’s network has been registering noteworthy spikes every other day, while the same for BTC has been dwindling. Even though BTC has 360k active addresses, BCH has 60k, and the latter’s recent advancements cannot be overlooked.
Is BCH overvalued or undervalued?
At the time of writing, the price of BCH appeared to be slightly overpriced. On 20 July, the MVRV ratio was -0.001 percent (indicating a close-to-fair price), while at the time of writing, it was slightly above the zero line – at 5 percent. This minute increase suggested that investors are making slightly more money in the BCH market than usual.
Bitcoin appeared to be overvalued at the time of writing, with an MVRV ratio of around 70%.
Even though BCH’s metrics do not appear to be very appealing at the moment, it should be noted that the alt’s close above $387 yesterday effectively eliminated the possibility of a retracement to $370, which is a very positive sign. However, if Bitcoin’s price falls again in the coming days, BCH will undoubtedly be one of the worst affected alts.