Bitcoin Cash analysis: BCH/USD crashes below $1,200, Brian Kelly's pitch of little help
|- Cryptocurrency investor Brian Kelly believes in long-term BCH rally.
- The price drops below important 100-SMA, more downside in store.
Bitcoin Cash dropped to $1,190 handle early on Tuesday after an unsuccessful attempt to break above $1,300 resistance. BCH has lost over 11% on a weekly basis and over 50% since the beginning of the year.
Bitcoin Cash is the fourth largest coin with the market cap over $20.6B and daily average trading volume $622M. The trading volume has dropped significantly from over $1B registered on May 14, which may be attributed to BCH hard fork that happened on May 15.
Cryptocurrency investor Brian Kelly confirmed his optimistic view towards Bitcoin Cash speaking on CNBC's Fast Money on Monday. Bitcoin Cash miners met on Saturday to discuss the ways of financing further BCH development. It was proposed to allocate some part of the rewards they get from mining to a special fund and invest them in enhancing BCH ecosystem.
"That's how blockchains gain value. You're going to be getting more use cases to the extent that usefulness translates into value. That could be a positive for bitcoin cash," Kelly explained.
Bitcoin Cash technical picture
Bitcoin Cash is changing hands at $1,190. It broke below 100-SMA (hourly chart) at $1,214, which adds bearish pressure to the price movement. If the price fails to get back above $1,200 and $1,214, the selling pressure may increase and take it to $1,133, May 18 low. On the upside, the resistance is created by the above-mentioned 100-SMA and the downside trendline at $1,265.
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