Bitcoin cash, cryptocurrency
The crypto market is taking a beating as we head into the new week. | Source: Shutterstock

Bitcoin Cash Slips 11% as Crypto Market Starts Week with $6 Billion Loss

The light at the end of the tunnel could be a train.

The saying fits Bitcoin Cash ABC whose market capitalization established a weekly high at $2.36 billion on January 24. But, at the start of this week, the cryptocurrency’s cap fell to as low as $1.94 billion.

BITCOIN CASH 7D PERFORMANCE | SOURCE: COINMARKETCAP.COM

Key Support Range Broken

At 1354 UTC, the BCH/USD pair was trading at 110.81, down 11% on a 24-hour adjusted timeframe, according to data aggregator CoinMarketCap.com. The service also highlighted that traders exchanged large hands between Bitcoin Cash and Bitcoin on LBank and P2PB2b – both of them unregulated.

BITCOIN CASH 1H CHART | SOURCE: TRADINGVIEW.COM, COINBASE

According to charts available at Coinbase, a US-based regulated crypto exchange, BCH/USD was now below its previous accumulation range. Between the trading session of January 20 and January 22, the 119.52-121.34 range had capped the downside attempts. On January 27, bears tested the same area to extend their downside corrections. And today, they managed to puncture the said support range and established new lows at 108.22.

Technically, the coin is looking at a smaller recovery in the near-term as the Relative Strength Index (RSI) aims for a correction above 30.

Crypto Market Loses $6 Billion

The crash of Bitcoin Cash came as a part of an overall negative sentiment in the cryptocurrency market. As of 1400 UTC, the industry’s combined loss, according to 24-hour timeframe, amounted to nearly $6 billion. While Bitcoin Cash led the crash with its 11% plunge, Stellar followed by dropping more than 10%.

STELLAR 7D PERFORMANCE | SOURCE: COINMARKETCAP.COM

At 1405 UTC, the XLM/USD rate was near 0.089, down 25.8% from its weekly high at 0.128. A large portion of Stellar coins was exchanged for/from Tether’s USDT on crypto spot exchange ZB.com, according to CoinMarketCap.com.

Unlike Bitcoin Cash, Stellar had a fundamental reason behind its dismissive performance over the weekend and today. A wallet, associated with the Stellar Development Fund, allegedly sent XLM tokens across the various cryptocurrency exchanges. It led to a rumor saying that the core team was dumping their pre-mined XLM holdings. True or not, the news managed to shake trading sentiments for the coin.

Though, the price performance of Stellar was strikingly similar to Bitcoin Cash. According to Binance, the XLM/USD also broke below a critical support range.

STELLAR 1H CHART | SOURCE: TRADINGVIEW.COM, BINANCE

However, unlike Bitcoin Cash, the RSI in Stellar hourly chart is already recovering from its oversold territory.

Losses Everywhere

Other top cryptocurrencies fell similar to Bitcoin Cash and Stellar. But, their losses were comparatively lower.

Ethereum and Tron, for instance, plunged inside the range of 6-7%, according to a 24-hour adjusted timeframe. At the same time,  Bitcoin, EOS and XRP dropped between 3-4%.

Bitcoin SV, on the other hand, was the third worst performing top cryptocurrency. According to CoinMarketCap.com, the BSV/USD rate dropped more than 8% in the past 24 hours. Bitcoin SV and Bitcoin Cash ABC were born out of November 2018’s controversial Bitcoin Cash fork.

Click here for a real-time bitcoin cash price chart.

Featured Image from Shutterstock. Price Charts from TradingView.