Why did the price of BCH fall?

Bitcoin Cash (BCH) dropped 1.35% to $476.77 in the last 24 hours, underperforming the overall crypto market, which fell 0.93%. This decline was driven by technical resistance levels, profit-taking by traders, and the ripple effects of Bitcoin’s price swings. Key points to note:

1. Technical Resistance at $495 – BCH tried to break above this level but was pushed back, leading to selling pressure.
2. Strong Link to Bitcoin – BCH’s price moves closely follow Bitcoin, with a 0.94 correlation over the past week, increasing its vulnerability to Bitcoin’s volatility.
3. Market Fear – The Crypto Fear & Greed Index dropped to 21, indicating extreme fear, which typically lowers demand for alternative cryptocurrencies like BCH.

Deep Dive

1. Failed Technical Breakout (Negative Signal)

What happened? On November 5, BCH rose 3.3% to $491.80 after breaking through a resistance level at $487. However, it quickly hit a ceiling at $495.30 and then pulled back. Trading volume also fell by 21.5% to $246 million, showing less buying interest.

Why it matters: Traders likely took profits near $495, a key technical level linked to the Fibonacci retracement at $485.10. Indicators like the MACD (-4.12) and RSI (37.24) suggest weakening momentum, giving sellers the upper hand and pushing prices below important support at $479.

What to watch: If BCH closes above $485 on a daily basis, it could regain upward momentum. But if it falls below $465, it might slide further toward support around $420.

2. Bitcoin’s Influence on Market Sentiment (Negative Impact)

What happened? Bitcoin’s price dropped below $100,000, down 18% from its October highs. This decline put pressure on altcoins like BCH, which tend to follow Bitcoin’s lead. Bitcoin’s market dominance increased to 59.91%, indicating investors are moving funds into Bitcoin as a safer option.

Why it matters: BCH’s strong 7-day price correlation with Bitcoin (0.94) means it’s highly sensitive to Bitcoin’s price changes (source: CoinDesk). Additionally, spot Bitcoin ETFs saw $1.3 billion in outflows over four days, signaling that institutional investors are pulling back from riskier assets, which affects altcoins like BCH.

3. Regulatory Uncertainty (Mixed Effects)

What happened? The U.S. government shutdown, lasting 36 days as of November 6, has delayed new crypto market regulations until 2026 (source: CoinDesk). Meanwhile, Grayscale has filed for ETFs involving BCH, Litecoin (LTC), and Hedera Hashgraph (HBAR), but it’s unclear when these will be approved.

Why it matters: While ETF approvals could boost BCH in the long run, the current regulatory delays are causing traders to be cautious. BCH’s 30-day price volatility has increased to 52%, reflecting this uncertainty.

Conclusion

Bitcoin Cash’s recent price drop is due to a combination of hitting technical resistance, Bitcoin’s own price weakness, and broader market uncertainty. The $465 to $485 price range may offer some short-term stability, but the overall downward trend in the crypto market (down 7% over the week) remains the main factor to watch.

What to monitor: Will BCH hold the $465 support level if Bitcoin tests $95,000? Keep an eye on Bitcoin’s market dominance (source) and ETF flow data for clues on where the market might head next.

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What could affect the price of BCH?

Bitcoin Cash (BCH) is currently caught between potential positive news from an ETF approval and risks from technical weaknesses in its price.

1. ETF Speculation (Positive) – Grayscale’s plan to convert its Bitcoin Cash Trust into an ETF could bring in big investors.
2. Technical Weakness (Negative) – Indicators suggest BCH might drop to around $440 if it breaks key support levels.
3. Bitcoin Link (Mixed) – BCH closely follows Bitcoin’s price, so if Bitcoin falls, BCH could also decline.

In-Depth Analysis

1. ETF Speculation & Regulatory Environment (Positive Outlook)

Grayscale has applied to turn its Bitcoin Cash Trust into an exchange-traded fund (ETF), which is a regulated investment product that could attract large institutional investors (Coindesk). Additionally, recent political support for cryptocurrencies and clearer regulations in places like Canada suggest a friendlier environment for BCH.

If the ETF is approved, it could boost BCH’s legitimacy and price, similar to what happened with Bitcoin’s ETF-related gains in 2024. However, ongoing delays caused by the U.S. government shutdown (now lasting 36 days) might slow down this progress.

2. Technical Weakness & On-Chain Activity (Negative Outlook)

Currently, BCH is trading below important moving averages, with technical indicators like the MACD and RSI signaling weakness. The price is near a key support level at $485.1, and if it falls below this, BCH could slide further to about $440.

This technical breakdown could trigger automatic selling by trading algorithms. Also, BCH’s trading volume has dropped by about 8.65% in the last 24 hours to $275 million, and the number of daily active BCH addresses is at a six-year low. This suggests that current trading is more speculative rather than driven by real-world use.

3. Relationship with Bitcoin & Market Conditions (Mixed Outlook)

Bitcoin Cash’s price moves very closely with Bitcoin, showing a 0.94 correlation over the past week (Yahoo Finance). Since Bitcoin recently dropped below $100,000 and saw $1.3 billion in ETF outflows last week, BCH faces similar downward pressure.

If Bitcoin recovers, BCH could rise toward resistance near $520. But if Bitcoin remains weak, BCH might fall below $450. The current market sentiment, measured by the Fear & Greed Index, is at 21, indicating “Extreme Fear” and a high chance of panic selling.

Conclusion

The short-term outlook for Bitcoin Cash depends heavily on Bitcoin’s price stability and progress on the ETF approval. However, weak technical signals and low user activity suggest downside risks. Keep an eye on the $485 support level and updates from Grayscale’s SEC filings to see if institutional interest can balance out retail investors selling off.

What are people saying about BCH?

Bitcoin Cash is gaining attention with talks of a breakout and big investors making moves. Here’s what’s happening:

1. Technical experts are watching for a breakout above $500 after Bitcoin Cash cleared an important resistance level.
2. Large transactions by big holders (whales) jumped to $482 million in Bitcoin Cash.
3. Social media excitement is causing some worry about a price pullback because the coin looks overbought.
4. Long-term analysts are aiming for Bitcoin Cash to reach $600 or more if positive trends continue.

Deep Dive

1. @ColinTCrypto: “BCH primed to rip” (bullish)

“BCH/BTC and BCH/USD charts both bullish… outperforming BTC near-term”
– @ColinTCrypto (86.6K followers · 7517 media posts · 2025-06-28 12:11 UTC)
View original post
What this means: Technical analysts see Bitcoin Cash’s price patterns pointing upward, with $500 being a key psychological level that could lead to more gains.

2. @open4profit: Pivotal $500 decision zone (mixed)

“This next move decides everything – demand zone retest or breakout?”
– @open4profit (151K followers · 31.5K media posts · 2025-09-04 20:45 UTC)
View original post
What this means: Traders are divided on whether Bitcoin Cash can keep rising above $490-$500 or if it will fall back to support around $460.

3. CoinDesk Research: Whale-driven volatility (neutral)

“$482M in BCH whale transactions July 4th… price surged 18% but active addresses at 6-year lows”
– CoinDesk (Industry authority · 2025-07-05 17:27 UTC)
View analysis
What this means: Big investors are driving price changes, but fewer everyday users are active, which could make the market more unpredictable.

4. TokenPost: November breakout to $491.80 (bullish)

“BCH surges 3.3% as buyers absorb $487 resistance with 78% volume spike”
– TokenPost (Verified outlet · 2025-11-05 23:51 UTC)
View report
What this means: Short-term momentum is strong, with buyers defending the $487 level, setting the stage for a test of $500 again.

Conclusion

The overall outlook for Bitcoin Cash is cautiously optimistic. Technical signals and big investor activity suggest it could rise toward $520-$600. However, low participation from everyday users and swings in social media sentiment add some risk. Keep an eye on whether Bitcoin Cash can close above $500 on an hourly basis and watch BCH whale transactions for clues. Breaking above $495 might spark a buying frenzy, while falling below $487 could lead to profit-taking.

What is the latest news about BCH?

Bitcoin Cash is making moves through technical price breakouts and facing regulatory challenges while growing its network. Here are the key updates:

1. Price Breakout to $491.80 (November 5, 2025) – Buyers pushed Bitcoin Cash above the $487 resistance level during a market rebound.
2. Crowdfunding Using BCH (October 31, 2025) – A new on-chain crowdfunding platform raised over 100 BCH without needing a middleman.
3. Grayscale’s Bitcoin Cash ETF Filing (September 10, 2025) – Grayscale filed to create a Bitcoin Cash exchange-traded fund (ETF), showing growing institutional interest.

Deep Dive

1. Price Breakout to $491.80 (November 5, 2025)

What happened:
Bitcoin Cash’s price jumped 3.3% to $491.80 during European trading hours, breaking through the $487 resistance level with trading volume 78% higher than usual. The price had been steadily rising from $462 to $479, showing steady buying interest. Now, the next resistance is around $495, and if momentum continues, the price could move above $500.

Why it matters:
This breakout shows renewed confidence among buyers, but it’s important for the price to stay above $487. If it falls back below, it might test the $479 support level again. (CoinDesk)

2. Crowdfunding Using BCH (October 31, 2025)

What happened:
General Protocols launched a crowdfunding platform that runs entirely on the Bitcoin Cash blockchain. When people pledge funds, they receive refundable NFTs (digital tokens) in return. Since launching, the platform has raised over 100 BCH (about $47,400), highlighting Bitcoin Cash’s potential beyond just payments.

Why it matters:
This shows Bitcoin Cash is being used for more than just sending money—it’s expanding into decentralized finance (DeFi). However, it’s still less popular than platforms like Ethereum or Solana for these types of projects. (General Protocols)

3. Grayscale’s Bitcoin Cash ETF Filing (September 10, 2025)

What happened:
Grayscale Investments filed with the U.S. Securities and Exchange Commission (SEC) to turn its Bitcoin Cash Trust into a spot ETF. This would allow investors to buy Bitcoin Cash through a traditional stock market product, similar to Grayscale’s Bitcoin ETF. The SEC is reviewing the proposal, with a decision expected in early 2026.

Why it matters:
If approved, this ETF could bring more institutional money into Bitcoin Cash. However, the ongoing U.S. government shutdown is delaying crypto-related regulations, so a decision might take longer. (BTCHaber)

Conclusion

Bitcoin Cash is showing strength in price and innovation in its ecosystem, but regulatory uncertainties remain a challenge. Whether Bitcoin Cash can break past $500 and spark a wider altcoin rally depends on both market momentum and regulatory progress.

What is expected in the development of BCH?

Bitcoin Cash’s development plan is focused on improving smart contracts and making the network more scalable.

1. Smart Contract Upgrades (2025–2026) – Expanding decentralized finance (DeFi) features with VM Limits and BigInt support.
2. OP_EVAL Implementation (2026) – Adding the ability to run more complex scripts for advanced applications.
3. Pay-to-Script Proposals (2026+) – Enhancing transaction flexibility and privacy.

Deep Dive

1. Smart Contract Upgrades (2025–2026)

Overview:
In May 2025, Bitcoin Cash activated two important upgrades: VM Limits (CHIP-2021-05) and BigInt (CHIP-2024-07). These allow the network to handle larger data sets (up to 10,000 bytes) and perform high-precision math calculations. This opens the door for more advanced DeFi projects, cross-chain bridges, and other financial tools on Bitcoin Cash.

What this means:
This is a positive development for Bitcoin Cash (BCH) because it makes the network a more affordable alternative to Ethereum for programmable money applications. However, the real impact depends on how many developers build on BCH and how it competes with Layer-2 solutions on other blockchains.

2. OP_EVAL Implementation (2026)

Overview:
Scheduled for 2026, OP_EVAL will introduce a new command that lets the network run scripts dynamically. This means Bitcoin Cash can support more complex, conditional transactions and decentralized apps while keeping security strong.

What this means:
This upgrade is somewhat positive, as it could attract developers who want Bitcoin-level security with more advanced features. Still, there’s a chance of delays or technical issues during rollout.

3. Pay-to-Script Proposals (2026+)

Overview:
Looking ahead, Bitcoin Cash may add Pay-to-Script features. This would let users set custom spending rules without revealing the full details upfront, improving privacy and reducing the amount of data stored on the blockchain.

What this means:
This is good news for BCH’s use as digital cash, boosting privacy and efficiency. But it will require agreement from the community’s node operators, which might slow down how quickly it’s adopted.

Conclusion

Bitcoin Cash’s roadmap aims to make smart contracts more flexible and transactions more efficient, balancing the original vision of Satoshi Nakamoto with today’s DeFi needs. While upgrades like OP_EVAL could open new possibilities, success depends on smooth implementation and strong developer support. Will Bitcoin Cash’s developer community keep pace with innovations on other blockchains?

What updates are there in the BCH code base?

Bitcoin Cash made significant upgrades in 2025 to improve its ability to handle more transactions and support smarter applications.

1. VM Limits & BigInt Activation (May 15, 2025) – Increased smart contract capacity and enabled precise calculations for complex financial tools.
2. Knuth v0.68.0 Release (July 2025) – Unified the software code and prepared for more efficient transaction processing.
3. Security Patch Backport (June 2025) – Fixed a vulnerability that could have allowed attacks to disrupt the network.

Deep Dive

1. VM Limits & BigInt Activation (May 15, 2025)

What happened: This upgrade removed limits on how much data smart contracts can process and introduced support for very large numbers in calculations. This means Bitcoin Cash can now handle more complex financial applications like decentralized exchanges and lending platforms. It also keeps transaction fees very low and speeds up processing.

Why it matters: These changes make Bitcoin Cash more attractive for developers building advanced financial apps, without sacrificing security or affordability. Users benefit from faster, cheaper transactions with new possibilities for decentralized finance (DeFi).
(Source)

2. Knuth v0.68.0 Release (July 2025)

What happened: This update combined different parts of Bitcoin Cash’s software into a single, streamlined codebase. It also set the stage for future improvements in how transactions are tracked and verified, especially when handling large volumes.

Why it matters: While this update doesn’t immediately change user experience, it improves the stability and efficiency of the network. This means smoother performance during busy times and faster transaction confirmations down the line.
(Source)

3. Security Patch Backport (June 2025)

What happened: A serious security flaw that could let attackers crash Bitcoin Cash nodes was fixed. This patch was originally developed for Bitcoin Core and adapted for Bitcoin Cash to keep the network safe.

Why it matters: This fix is crucial for maintaining network reliability and preventing disruptions. Although no attacks were reported after the patch, it was important for exchanges and miners to update their software promptly.
(Source)

Conclusion

The 2025 upgrades to Bitcoin Cash focus on making the network faster, more scalable, and more flexible for developers. The VM Limits and BigInt features are especially important for enabling new financial applications at low cost. Meanwhile, improvements to the software infrastructure help ensure long-term stability. It will be interesting to see how these changes affect Bitcoin Cash’s competition with platforms like Ethereum and Solana in the growing world of decentralized finance.