Why Bitcoin Cash [BCH] investors should not expect profits anytime soon

The market capitalization of the entire cryptocurrency market has fallen by about 5% since the month began. Current as of August 27 is $944.9 billion.

Moreover, the general market downturn has led to leading coins such as Bitcoin [BTC] and Ethereum [ETH] to enter two-digit rejections in the last 26 days. Shares a significant positive context with BTC, Bitcoin Cash [BCH] has been affected by the general market downturn.

Good times did not last

As of August 15, BCH was trading at $145.92, having grown by 40% 30 days prior. At the time of writing, the altcoin changed hands at an index price of $117.05, down 24% in the last 12 days.

In the last 24 hours, the coin had fallen by 8%, data from CoinMarketCap revealed. Although trading volume increased by 42% over the same period, the difference between price action and trading activity indicates buyer fatigue. This may lead to further price reductions.

The readings of BCH’s price movements on a daily chart didn’t tell a good story either. Since August 19, investors have been gradually reducing their BCH holdings. The surge in coin distribution sent key indicators – Relative Strength Index (RSI), Money Flow Index (MFI) and Chaikin Monkey Flow (CMF) – below their respective neutral points.

At the time of writing, the RSI was 40. The coin’s MFI was 39, while the CMF was -0.20. One reading of the positions held by these indicators was that the buying pressure for the BCH token had fallen over the past few days.

Source: TradingView

Performance on the chain

The number of unique addresses that have traded BCH coins has decreased since August 15th. In accordance Sentiment, daily active addresses on the BCH network were 16,400 addresses at press time. It fell by over 71% decline in the last 12 days.

In terms of transaction volume on the network, this also fell by over 50% within the same period. BCH’s transaction volume, represented in USD, has dropped from $93.79 million to $9.63 million in less than 15 days.

Source: Sentiment

While the price per BCH coin has fallen during the period under review, as for mining on the network, rewards received by miners from transaction fees and block grants since August 15 have grown by 10%.

Source: IntoTheBlock

Regarding the ratio of BCH investors in profit over the past month, the 30-day Market Value Realized Value (MVRV) had a negative -16.58. On a 365-day average, this metric also recorded a negative value of -51.21. This showed that many BCH investors have yet to make a profit since last year.

Source: Sentiment