Bitcoin Cash has weakened significantly recently, with its price falling sharply after breaking through the support level around $400, which had held for several months, resulting in a single-day drop of nearly 13%. As selling pressure intensifies, market focus has shifted from whether the rebound can continue to where further selling pressure might come from.
Break below support near $400
This decline occurred after BCH broke below the $400-$410 range. Previously, BCH had repeatedly found support in this area, but its rebounds in the $460-$480 range failed to hold, and buying pressure gradually weakened.
After the support level was breached, the price quickly slid towards the $350 range. The article argues that this pullback was more like a high-volume sell-off than a typical profit-taking move. Meanwhile, weakening sentiment in the altcoin market also amplified the downward pressure on BCH.
Futures trading volume increased significantly
Derivatives data also shows that the market is increasing its bets on a downside. Data shows that BCH 24-hour futures trading volume rose to $947.87 million, a significant increase of 219.66% from the previous day. Open interest rose slightly to $544.45 million, indicating that new positions are still entering the market.
- 24-hour futures trading volume: US$947.87 million
- Open interest: $544.45 million
- Single-day drop: nearly 13%
While prices fell, increased trading volume and no significant decline in open interest typically indicate active short selling. The article also mentions that funding rates were already weak before the support level was broken, reflecting that some traders had already established short positions.
Watch for support at $300 and $250.
From a technical perspective, BCH not only broke through the $400-$410 support level but also fell below the 200-week exponential moving average. This long-term moving average is often considered an important support level in larger timeframes, and a break below it signifies a further weakening of medium- to long-term momentum.
If prices continue to remain below the breached range, the next support level to watch will be around $300, with a deeper support around $250. To alleviate current pressure, BCH needs to return above $400 to $410; for a significant recovery, it needs to climb back above $460.
Overall, BCH has entered a more sensitive phase. Even if a technical rebound occurs in the short term, the market will still be watching whether it can recover the key levels it has lost.
