Bitcoin Switching Sees Cash Surge Towards Record High
- Bitcoin continues to build a base between $7,000 and $7,200 despite outflows.
- Bitcoin Cash rally leaves August 19 high vulnerable.
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Bitcoin (BTC): Consolidates as Traders Buy Alternatives
After the cancellation of the Segwit2x fork, traders have been moving out of BTC into a variety of other coins, as we highlighted yesterday, when a variety of altcoins recorded double-digit gains. And overnight it seems that the third-largest digital coin, Bitcoin Cash (BCH), was on the top of traders buy lists, surging by over 20% in Asian hours on the back of switching from BTC and heavy Korean Won buying. BCH has been rallying hard since the Segwit2x fork was cancelled as miners look to shift resources on the blockchain with transaction costs lower on the Cash fork.
And the latest rally is now probing the 23.6% Fibonacci retracement level of the August 6 -19 trading range with a close above this level opening a potential re-test of the August spike-high of $973. However, Bitcoin Cash has already rallied over 180% in the last month and may see a bout of profit-taking before making a move towards $1,000.
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Chart: Bitcoin Cash (BCH) Daily Timeframe (August – November 10, 2017)
Chart: Bitcoin (BTC) Daily Timeframe (July – November 10, 2017)
The latest rally in BCH has pushed the overall crypto-currency market capitalization back to a record $208 billion, up from $18 billion at the start of 2017.
Market Moves/Top 8 Capitalizations – November 10, 2017
--- Written by Nick Cawley, Analyst.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.