A fake news today on US supermarket chain Kroger accepting Bitcoin Cash (BCH) as a means of payment propelled the crypto’s prices to surge by over 4.6% in a matter of minutes. BCH hit a high at the $630.70 level, but later, it retraced and trimmed gains after the company confirmed that the announcement was false.
Most crypto traders in the sphere took the news as a legit one, given that the PR announcement was released through PR Newswire, a well-known press release distribution platform.
However, the fake post was taken down from the website. It falsely detailed that the retailer would be accepting Bitcoin Cash across its in-person and online stores in the US starting December 1.
Even the mainstream media echoed the fake publication on Kroger, and that’s why BCH gathered huge steam when it was released at around 11:30 GMT, as it added credibility.
Litecoin: Another Victim Of Fake News
This behavior was similar to the one witnessed in Litecoin (LTC) in September when another fake PR detailed that the retail giant Walmart would accept the cryptocurrency as a means of payment. However, the firm diminished the report in a matter of minutes, which was also released through the PR distribution platform.
At that time, LTC skyrocketed by over 30% to $225.75 from $175.45, which also helped to bolster Bitcoin (BTC) prices, when the fake news noted that Walmart was set to add a “Pay with Litecoin Option” within its offering. Moreover, the Litecoin Foundation’s Twitter handle re-tweeted the fake press release when it hit the wires.
Decisive Stage For Bitcoin Cash Price
Returning to Bitcoin Cash, the price is now hovering around the $598 neighborhood, slightly positive on the day with 0.31% gains. According to the 4-hours chart, BCH is finding support around the 50-period simple moving average, as the bullish construction from the lows of October 27 remains alive.
After the sudden spike witnessed today, the price didn’t manage to crack above the 200-period simple moving average, which keeps acting as a dynamic resistance. If BCH breaks above it, eyes will be on the $630 level, followed by $650.
On the downside, if the cryptocurrency extends its lower leg, the price could plummet towards $580 in the first degree. Next on the radar would be a free fall towards the $540 handle.