Bitcoin’s tumble last week has seen a similar move lower in Bitcoin Cash with a drop under the $250 level. The four-day rally in the U.S. dollar caused an unwind in commodities and anti-dollar currency pairs, with much of the top thirty cryptocurrencies registering double-digit losses on the week.
Bitcoin Cash is currently the sixth-largest cryptocurrency with a market cap of $4.14 billion. Rival crypto project Chainlink had streaked ahead of BCH but a recent 50% fall means the smart contract token is now valued at less than $100 billion more in fifth place.
Bitcoin Cash began life as a fork of Bitcoin in 2017, before it saw the acrimonious split in 2018 with a rival group of developers, which created the Bitcoin SV altcoin. The two coins have had their ups and downs internally, while Bitcoin SV has also seen external controversy due to the claims of the coin’s leader Craig Wright who claims to have created Bitcoin under the pseudonym of Satoshi Nakamoto. These claims have been refuted by many in the crypto community and the high-profile spats have dented the image of Bitcoin SV.
Despite this, the coin still holds eighth place in the list of coins by market cap with a valuation which is $1 billion less than BCH. There are now fears that BCH will see a third split with two factions, Bitcoin ABC and the Bitcoin Cash Node (BCHN), about to split from each other. The ABC developers are critical of development tools and funding for BCH but the politics in these coins won’t give investors confidence about their long-term potential. All forms of money are based on trust and further infighting could see them challenged by rival coins.
Bitcoin Cash Technical Outlook
Bitcoin cash failed to take the $300.00 level last week and fell hard to find support around $215.00. This area has been a previous support level since March and if the coin gets below this level then a drop to $100.00 is possible with the key 2018 support at $77.20
Bitcoin Cash Weekly Chart