Bitcoin Cash Price Drops Near $508 Amid Bearish Signals
Bitcoin Cash (BCH) trades around $508 as of Tuesday. The price dropped after failing to break above a key trendline. Weak on-chain data and falling market sentiment point to more declines. Bears now target the $450 support level.
On-Chain and Derivatives Data Show Bearish Trends for BCH
- Santiment’s Social Dominance for BCH fell from 0.76% on October 25 to 0.15% on Tuesday. This is its lowest level this year and its lowest since July 2023. The drop shows less investor interest and weaker community engagement.
- Coinglass reports Bitcoin Cash futures Open Interest down to $148.18 million on Tuesday from $200 million on October 4. Since September, OI has been declining, suggesting lower investor participation.
- The OI-Weighted Funding Rate from Coinglass turned negative on Tuesday at 0.0039%. This means more traders expect BCH price to fall. Historically, when funding rates turn negative, BCH prices tend to drop sharply.
BCH Price Outlook: Bears Eye Drop Toward $450 Support
BCH fell 4% last week after rejection near the $565 resistance, close to the 78.6% Fibonacci retracement level from $249.4 to $651. On Monday, it dropped more than 5%. The price now hovers near $508.
If BCH closes below the 61.8% Fibonacci level at $497.6, the price could fall further toward $450.2. The Relative Strength Index (RSI) at 43 shows increasing bearish momentum. The MACD indicates weakening bullish strength.
If BCH holds above $497.6, it may recover and move toward the 100-day EMA near $537.1.
