Why did the price of BCH fall?
Bitcoin Cash (BCH) dropped 2.91% in the last 24 hours to $540.23, adding to a 15% decline over the past week. The main reasons are:
- Technical Breakdown – BCH failed to hold important support price levels.
- Low Network Activity – The number of active BCH users is at a 6-year low.
- Market-Wide Sell-Off – The total cryptocurrency market value fell 4.3%, while Bitcoin’s dominance increased.
Deep Dive
1. Technical Weakness (Negative Impact)
BCH’s price fell below its 30-day simple moving average (SMA) of $582 and the Fibonacci 23.6% retracement level at $620. This triggered stop-loss orders, causing more selling. The MACD indicator (-6.24) shows growing downward momentum, and the RSI (40.33) is close to oversold but doesn’t yet signal a price reversal.
What this means: Traders relying on technical analysis likely sold their BCH holdings after the $550 support level broke, leading to more selling pressure. The next important support is $520—if BCH falls below this, it could lead to a deeper price drop.
2. Network Activity Collapse (Negative Impact)
Even though BCH’s price rose earlier in September, on-chain data from CoinDesk shows daily active BCH addresses are at their lowest point in six years. The number of transactions dropped 23% compared to last week, indicating that speculative trading is outweighing real-world use.
What this means: Weak network activity undermines positive price expectations. Until more people use BCH regularly, its price will remain vulnerable to market sentiment swings.
3. Altcoin Liquidation Spree (Mixed Impact)
Across the crypto market, liquidations totaled $241 million in 24 hours as Bitcoin’s dominance rose to 58.2%. BCH’s trading volume jumped 47%, suggesting panic selling. Meanwhile, derivatives open interest increased 18% weekly, showing leveraged positions are being closed out.
What to watch: Whether Bitcoin can stay above $115,000. Historically, BCH tends to underperform when Bitcoin’s market dominance grows.
Conclusion
BCH’s recent price drop is due to technical breakdowns, weak user demand, and broader market risk aversion. While oversold conditions might lead to a short-term bounce, a lasting recovery depends on Bitcoin’s price stability and increased BCH network usage.
Key levels to watch: Can BCH hold the $520 support while Bitcoin stays above $113,000? If not, BCH could test the 200-day exponential moving average (EMA) near $456.
What could affect the price of BCH?
Bitcoin Cash is currently caught between positive technical signals and challenges related to its use and liquidity.
- ETF Speculation – Grayscale may file for a Bitcoin Cash ETF, which could increase interest from big investors (BTCHaber).
- USDT Exit Risk – Tether plans to stop supporting BCH SLP tokens by September 1, which could reduce liquidity and slow adoption.
- Technical Breakout – If Bitcoin Cash breaks above $572, it could rise to $664 according to technical analysis (Coinpedia).
Deep Dive
1. Regulatory Catalysts & ETF Potential (Positive Outlook)
Grayscale is rumored to be applying for a Bitcoin Cash ETF, following similar moves with Bitcoin and Ethereum. If approved, this would likely bring new investment from institutions. However, delays from the SEC, like those seen with other ETFs, remain a possibility.
Why it matters: An ETF approval would officially recognize BCH as a regulated asset, potentially leading to a surge in trading volume and price. Past examples, like Bitcoin’s 60% price increase after ETF approval in 2024, suggest BCH could see a 25–40% price boost.
2. Stablecoin Liquidity Shift (Negative Outlook)
Tether will stop supporting USDT on Bitcoin Cash SLP tokens starting September 1 (Tether). Since about 18% of BCH’s daily trading volume ($487 million) involves stablecoins like USDT, this change could reduce liquidity.
Why it matters: Less stablecoin activity means fewer opportunities for decentralized finance (DeFi) and trading arbitrage, which could lower demand for BCH in the short term. BCH already shows signs of limited liquidity, and losing USDT support may increase price swings.
3. Technical Momentum vs. Market Challenges (Mixed Outlook)
Bitcoin Cash broke a two-year downtrend in September 2025, with technical indicators pointing to a potential rise to $664. However, momentum indicators like RSI and MACD suggest weakening strength, and the overall crypto market is down 8.23% for the week.
Why it matters: If BCH closes above $572, it could confirm a bullish trend. But if it fails, the price might fall to around $460. While some altcoins are rallying, BCH has underperformed Bitcoin by nearly 15% this week, signaling caution.
Conclusion
Bitcoin Cash’s future depends on balancing hopeful signs from a possible ETF and whale buying against risks from reduced liquidity and technical challenges. Grayscale’s ETF plans and recent large purchases ($39 million on August 31) are positive, but Tether’s exit and weakening momentum require careful monitoring. The upcoming Electronic Cash Conference in October and the Federal Reserve’s rate decision on September 17 will be key events to watch. Keep an eye on the $572 resistance level for clues on BCH’s next move.
What are people saying about BCH?
The conversation around Bitcoin Cash (BCH) is a mix of optimism about a price breakout and caution about possible corrections. Here’s what’s trending right now:
- Could BCH outperform Bitcoin? – Analysts see promising signals across different markets 🟠
- $600 is the big test – The $572 price level is a key resistance point dividing opinions 💥
- Tether changes course – Continued support from USDT brings new hope for BCH liquidity 💧
In-Depth Look
1. @ColinTCrypto: BCH/BTC & BCH/USD Show Bullish Signs
"BCH is very likely to outperform BTC… A major 7-year pattern is about to break out"
– @ColinTCrypto (18.2K followers · 124K impressions · 2025-06-28 00:11 UTC)
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What this means: This is good news for BCH. The analyst points out long-term chart patterns in both BCH’s price against Bitcoin and the US dollar that suggest BCH could start moving independently from Bitcoin’s price trends. The $542 price level is currently acting as strong support for BCH.
2. @CMC Community: $572 Resistance Is Key to Breaking $600
"Hidden RSI divergence indicates risk of a price squeeze… Falling below $520 would weaken the bullish outlook"
– CMC Community Post (Published 2025-08-07 15:12 UTC)
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What this means: This is a mixed signal for BCH. While the price is trending upward and could reach $664, there’s a tight stop-loss level at $520, which means there’s little room for error before the bullish case falls apart.
3. Tether Policy Shift: USDT Support Strengthens BCH
"Tether reverses plan to drop BCH SLP token support, causing a 45% spike in trading volume"
– TradingView News (Published 2025-09-03 07:51 UTC)
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What this means: This is positive for BCH. Tether’s decision to keep supporting BCH’s Simple Ledger Protocol (SLP) tokens boosts BCH’s use as a payment method. Large investors, or “whales,” have been buying up 66,000 BCH (worth about $39.4 million) since the announcement.
Conclusion
The overall outlook for Bitcoin Cash is cautiously optimistic. Traders are watching the $572 to $606 resistance zone closely—it could determine whether BCH breaks out or pulls back. Long-term holders are encouraged by Tether’s renewed support. Also, keep an eye on the 50-day Simple Moving Average (SMA) at $558; holding above this level could confirm the upward trend.
What is the latest news about BCH?
Bitcoin Cash is gaining attention from big investors and market trends. Here are the key updates:
- Grayscale Files for BCH ETF (September 17, 2025) – The first U.S. spot ETF application for Bitcoin Cash shows growing institutional interest.
- Tether Reverses USDT Phase-Out (September 3, 2025) – Tether decided to keep supporting USDT on the Bitcoin Cash network, improving liquidity.
- Whales Accumulate $39M BCH (August 31, 2025) – Large investors bought a significant amount of BCH, boosting positive market sentiment.
Deep Dive
1. Grayscale Files for BCH ETF (September 17, 2025)
Overview:
Grayscale Investments has applied to the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin Cash ETF. This follows similar applications for other cryptocurrencies like HBAR and LTC, reflecting growing interest from institutional investors after Bitcoin and Ethereum ETFs were approved.
What this means:
If approved, the ETF could bring more institutional money into Bitcoin Cash and improve its standing with regulators. However, the SEC has delayed decisions on similar ETFs before, so a final decision might not come until 2026. (RichardMcCrackn)
2. Tether Reverses USDT Phase-Out (September 3, 2025)
Overview:
Tether, the company behind the popular stablecoin USDT, reversed its plan to stop supporting USDT on Bitcoin Cash’s Simple Ledger Protocol (SLP) tokens. This change came after feedback from the community and recognition of Bitcoin Cash’s usefulness for payments.
What this means:
Keeping USDT on the BCH network helps maintain liquidity and triggered a 4.5% price increase in one day. Continued support for USDT strengthens Bitcoin Cash’s role as a low-cost payment option, but wider adoption is needed to keep this momentum going. (Coinpedia)
3. Whales Accumulate $39M BCH (August 31, 2025)
Overview:
According to IntoTheBlock, large investors, often called “whales,” bought 66,000 BCH worth about $39.4 million in a single day—the biggest daily purchase since June 2025.
What this means:
This shows strong confidence in Bitcoin Cash’s potential, especially as its price broke above a key resistance level of $572. However, technical indicators like the Relative Strength Index (RSI) suggest the asset might be overbought, meaning a short-term price drop could happen. (IntoTheBlock via TradingView)
Conclusion
Bitcoin Cash is benefiting from growing institutional interest, improved stablecoin support, and large investor activity. While recent price action shows some volatility, these factors could lead to a stronger mid-term outlook. The big question remains: will the SEC approve Grayscale’s ETF application soon, or will regulatory caution slow down Bitcoin Cash’s progress? Meanwhile, BCH’s focus on payments could help it stand out in the crowded crypto market.
What is expected in the development of BCH?
Bitcoin Cash is making important progress with these key updates:
- Smart Contract Improvements (2025–2026) – Upgrades to support more advanced decentralized finance (DeFi) features with better performance.
- Faster Block Times Proposal (Under Review) – Considering reducing block times from 10 minutes to 2 minutes to speed up transactions.
- Pay-to-Script Enhancements (2026) – Adding more flexible scripting options to improve wallet security and transaction customization.
- ETF Institutional Interest (Q4 2025) – Grayscale has applied for a Bitcoin Cash ETF, which is currently being reviewed by the SEC.
In-Depth Look
1. Smart Contract Improvements (2025–2026)
What’s happening: In May 2025, Bitcoin Cash introduced upgrades called VM Limits and BigInt, which improve how smart contracts work. This means the network can now handle more complex financial applications like lending and automated trading, while keeping transaction fees very low (under one cent) (Levex).
Why it matters: These upgrades make Bitcoin Cash a more affordable alternative to Ethereum for DeFi projects, potentially attracting developers and users. However, the success depends on how quickly the supporting tools and apps develop.
2. Faster Block Times Proposal (Under Review)
What’s happening: Developers are discussing reducing the time it takes to add a new block to the blockchain from 10 minutes to 2 minutes. This change aims to speed up transaction confirmations, similar to faster networks like Solana. Testing is currently underway on a test network called Chipnet.
Why it matters: Faster blocks could make Bitcoin Cash more practical for everyday payments. But there’s a trade-off: speeding up blocks might make mining less decentralized, which could affect network security. The outcome depends on finding the right balance.
3. Pay-to-Script Enhancements (2026)
What’s happening: Planned upgrades will improve Bitcoin Cash’s scripting language, allowing for features like multi-signature wallets and more customizable transactions. This brings Bitcoin Cash closer to Bitcoin’s Taproot capabilities.
Why it matters: These improvements could attract institutional investors by offering better security and support for complex transactions. However, technical challenges or delays could slow down these benefits.
4. ETF Institutional Interest (Q4 2025)
What’s happening: Grayscale filed for a Bitcoin Cash exchange-traded fund (ETF) in September 2025, following the success of Bitcoin ETFs. The SEC is currently reviewing the application.
Why it matters: Approval of a Bitcoin Cash ETF could increase demand from institutional investors, helping to stabilize prices and improve market liquidity. On the other hand, regulatory delays or rejection could temporarily hurt market confidence.
Conclusion
Bitcoin Cash is focusing on making its network faster and smarter, while also attracting institutional investors through ETFs. The main challenges include competition from Ethereum’s Layer-2 solutions and uncertain regulations. The big question is whether Bitcoin Cash’s low fees and growing smart contract capabilities can help it stand out among other established blockchain platforms.
What updates are there in the BCH code base?
Bitcoin Cash’s recent updates focus on making smart contracts more scalable and improving tools for developers.
- VM Limits & BigInt CHIPs (May 2025) – Expanded scripting capabilities to support more complex decentralized finance (DeFi) applications.
- CashTokens Ecosystem Updates (August 2025) – Improved token creation and wallet features for easier use.
- Knuth Node Codebase Unification (July 2025) – Streamlined transaction processing to prepare for future upgrades.
Deep Dive
1. VM Limits & BigInt CHIPs (May 2025)
Overview: In May 2025, Bitcoin Cash upgraded its network to remove limits on script execution and introduced support for very large numbers (up to 80,000 bits).
The Virtual Machine (VM) Limits CHIP lifted restrictions like the maximum number of operations allowed in a script. Meanwhile, BigInt added native support for high-precision math. This means developers can now create advanced financial contracts—such as fractional NFTs and multi-signature derivatives—without complicated workarounds.
What this means: This is a positive development for Bitcoin Cash because it allows developers to build sophisticated DeFi applications directly on the blockchain. It positions BCH as a strong competitor to Ethereum’s smart contract platform, while keeping transaction costs low—typically under one cent. (Source)
2. CashTokens Ecosystem Updates (August 2025)
Overview: Core developer Mathieu Geukens enhanced the CashTokens system by updating the Cashonize wallet and improving the CashScript software development kit (SDK).
These updates make it easier to create tokens and set programmable spending rules. For example, CashScript now supports atomic swaps using time-locked contracts, which lets users exchange tokens directly without relying on third-party services.
What this means: In the short term, this is neutral for Bitcoin Cash since wider adoption depends on third-party apps integrating these features. However, it strengthens BCH’s role as a Layer 1 blockchain for tokenized assets. (Source)
3. Knuth Node Codebase Unification (July 2025)
Overview: The Bitcoin Cash Node version 28 combined older and experimental code to prepare for improvements in how unspent transaction outputs (UTXOs) are managed in 2026.
This update increased block processing speed by 15% for nodes handling large blocks (over 100MB). It also introduced “parallel compact block downloads,” which helps nodes sync faster with the network.
What this means: This is good news for Bitcoin Cash because faster node performance makes it easier for miners and businesses to participate, boosting the network’s overall strength and reliability. (Source)
Conclusion
Bitcoin Cash’s 2025 upgrades focus on scaling smart contracts and improving infrastructure, all while keeping transaction fees low. The VM and CashTokens improvements position BCH as a practical alternative to Ethereum for DeFi and token projects. Meanwhile, the node software updates prepare the network for future growth and increased efficiency.
The big question remains: will developer interest in CashScript lead to significant on-chain activity before 2026?