The dynamics of volume trading: Exploration Bitcoin (BCH)
Being the first and the greatest cryptocurrency in the world, Bitcoin was a motor force behind the global cryptocurrency market. However, in the middle of chaos and volatility, another player seemed to challenge his domain – Bitcoin Cash (BCH). In this article, we will deepen the dynamics of the commercial volume for BCH and explore because it is worth watching.
What is Bitcoin Cash (BCH)?
Bitcoin Cash is a peer-to-peer cryptocurrency that has been created as an alternative to Bitcoin. It aims to provide faster transaction times, lower taxes and increased scalability than its predecessor. In May 2017, the Bitcoin community voted to divide Bitcoin into two distinct cryptocurrencies: Bitcoin Cash and Bitcoin.
Trading volume: a key market indicator
The volume of trading is a crucial measure that measures the size of a market and the flow of activities inside. Represents the number of transactions performed per unit of time. When the traders acquire or sell an activity, their transactions contribute to the total negotiation volume, which in turn influence prices dynamics.
Volume of trading in Bitcoin cash: a key indicator
The trading volume for Bitcoin Cash (BCH) has grown constantly from its plant. According to Coinmarketcap data, BCH market capitalization is about $ 17 billion and its commercial volume is significantly higher than Bitcoin.
Why is the volume of trading bch
There are several reasons why the volume of trading BCH is significant:
- Volume correlation : larger trading volumes are often related to higher price movements. This means that when the traders acquire or sell BCH, their transactions tend to increase the price or lower.
- Entry of the market : the strong market sensation can influence commercial volumes. When a trader considers that BCH is increasing, it is more likely to increase its purchase activity, which leads to higher trading volumes.
- Price volatility
: greater bust in BCH tends to lead to an increase in the negotiation volume, since the traders react to price variations.
Historical context: Ascension Bch
The capitalization of the market BCH has grown rapidly in the last year, determined by several factors:
- Increase in adoption : Since different traders and companies begin to accept BCH as a payment method, the application for IT increases.
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- Investors’ interest : BCH’s strong technical performance has attracted institutional investors looking for high performance activities.
Key trading volume levels
Here are some key levels of the trading volume that operators should be aware:
* High volatility (20,000 – 50,000 BNB) : This level indicates high market activities and potential price variations.
* Medium volatility (5,000 – 20,000 BNB) : This level suggests a moderate market movement and a balance between purchase and sale activities.
* Low volatility (<5,000 BNB) : This level indicates a low market and low -price movements.
Conclusion
The dynamics of the trading volume for Bitcoin Cash (BCH) are crucial indicators that traders should consider. While BCH continues to obtain traction, it is likely that its volume of trading remains high, which makes an interesting investment opportunity for those who include the markets.
However, it is essential to remember that market conditions and feeling can change quickly. Traders must be informed of the latest news, technical trends and analysis to get to know their investments.
Advice
* Long -term investors
: Consider holding long -term BCH, as it has a continuous growth potential.
* Short -term trader : be cautious for high volatility and consider taking a bear or neutral position on BCH.