- Bitcoin Cash price has crashed to the lowest point since Sunday.
- The network’s hash rate has plunged to 1.43 EH/s.
- Bitcoin and Litecoin's hash rate has jumped to a record high.
Bitcoin Cash price plunged to the lowest point since Sunday as signs of challenges in the network remained. BCH/USD crashed to a low of $138.38, which was significantly lower than the year-to-date high of $154. Still, despite the plunge, BCH remains about 45% above the lowest point in 2022.
BCH hash rate plummets
Bitcoin Cash has been a fallen angel in the crypto industry in the past few months. The coin’s daily trading volume significantly lags that of other popular coins like Bitcoin and Litecoin. Its traded volume in the past 24 hours was about $250 million.
At the same time, its market cap has plunged to about $2.67 billion, making it the 27th biggest cryptocurrency in the world. At its peak, BCH was one of the top ten of biggest coins in the world.
A close look at some on-chain metrics paints a picture of a coin that is not doing well. A good way to look at this is to focus on its hash rate. While Litecoin and Bitcoin’s hash rate has jumped to an all-time high, Bitcoin Cash’s stands at 1.43 EH/s, which is lower than this month’s high of 1.9 EH/s. It is also below its record high of about 2 EH/s.
Hash rate is an important metric in proof-of-work cryptocurrencies since it measures the number of guesses needed to validate a transaction. A higher rate means that the network is significantly healthy. As such, we can say that BCH is relatively unhealthy for now.
Read more: How to buy Bitcoin Cash.
Another key data to watch is Bitcoin Cash’s mining difficulty. Data shows that difficulty has dropped to 224G, which is lower than the year-to-date high of 230G. This means that activity among miners has continued easing.
These numbers paint a picture of a coin that is relatively unsafe and one that is struggling to compete with the likes of BTC and LTC. As I wrote on Tuesday, Litecoin price started soaring in June as miners moved from Ethereum.
Bitcoin Cash price prediction
The 4H chart shows that the BCH crypto price has made a strong bearish breakout in the past few days. It has managed to cross the important support level at $143.31, the highest point on February 2. This price was the upper side of the cup and handle pattern that is shown in purple.
Bitcoin Cash has crashed below the 25-period and 50-period moving averages. Therefore, I suspect that the coin will continue falling as sellers target the key support level at $130.
