Analysts warn Bitcoin Cash could plummet

Analysts warn Bitcoin Cash could plummet

With Bitcoin’s fall exacerbated by German government sales and the release of values ​​of the old MTGox, one analyst suggested that the ‘copy’ Bitcoin Cash (BCH) could fall four times more.

Over the past seven days, Bitcoin (BTC)’s devaluation against the dollar has already scared many investors, with a 9.11% drop, reaching US$57,150.00 on Monday (8).

Bitcoin Cash lost 13.8% over the same period, trading today at US$332.00 per unit, and is the cryptocurrency losing the most value of the 20 largest in the market.

Analysts predict Bitcoin copy could drop four times more

Analyst Peter Chung, known on social media as “Red Pill Taker,” said in recent days that selling pressure could hit investors in bitcoin cash.

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Since the cryptocurrency has a weaker investor base, he believes that everyone will sell their BCH in the short term. Bitcoin (BTC) sellers should not liquidate all their positions by holding their assets with diamond hands.

“Our analysis shows that BCH selling pressure will be four times greater than BTC – that is, 24% of BCH’s daily trading value versus 6% of BTC’s daily trading value. The assumptions are: 1) BTC will only see a fraction of the selling pressure, as the lenders are mostly wealthy Bitcoiners with “diamond hands”; 2) BCH will see 100% selling pressure in the short term, given its much weaker investor base.”

The analysis reveals a potential opportunity in the BTC/BCH pair among brokers, who could have a larger number of traders.

Source: Live Coins