What could affect the price of BCH?
Bitcoin Cash (BCH) is at a critical point, with important upgrades planned for 2026 that could increase its usefulness and value.
- Price Movement – Breaking above $719 resistance might push BCH up by 60% to $1,150, but if it fails, the price could drop 15% to $518.
- CashVM Upgrade – Coming in May 2026, this upgrade will add quantum-resistant smart contracts, potentially attracting more developers if it launches on time.
- Adoption Challenges – While over 2,500 merchants accept BCH, its usage lags behind stablecoins, and decentralized finance (DeFi) activity is low, showing limited demand.
In-Depth Analysis
1. Price Movement (Mixed Outlook)
Currently, BCH is trading around $612, just below a key resistance level at $719 that has kept prices capped since 2021. Experts like Peter Brandt suggest that if BCH closes above $719 on a monthly basis, it could confirm a breakout pattern, pushing the price toward $1,150. However, if BCH fails to break this level, it might fall back to support near $518. The market shows low sell-side liquidity around $650, which could cause sharp price swings during attempts to break out. (CoinDome)
What this means: If BCH breaks through $719, it could attract traders looking for momentum, potentially driving prices up by over 60%. On the other hand, failure to break this resistance might trigger sell-offs, especially since the Relative Strength Index (RSI) is neutral at 52.79, offering no strong signal that BCH is oversold or overbought.
2. CashVM Upgrade (Positive Outlook)
Scheduled for May 2026, the CashVM upgrade will introduce advanced quantum-resistant encryption (128-bit security) and improve BCH’s smart contract capabilities. Early tests show that this upgrade could allow decentralized apps (dApps) to use 100 times more computing power while keeping transaction fees under one cent—much cheaper than Ethereum. BCH’s integration with NEAR Protocol already supports cross-chain swaps across more than 25 networks. (Levex)
What this means: This upgrade could make BCH a unique, low-cost, and highly secure blockchain platform. If successful, it might attract DeFi developers and users, similar to the 94% price increase BCH saw after a major upgrade in May 2023. However, any delays or technical issues could hurt BCH’s reputation.
3. Adoption Challenges (Negative Outlook)
Although more than 2,500 merchants accept BCH, its payment volume is still behind stablecoins and the Lightning Network. The total value locked (TVL) in BCH’s DeFi ecosystem is about $250 million, which is very small compared to Ethereum’s $52 billion. Analysts point out that BCH struggles to define itself clearly—caught between being a payment method and a smart contract platform—which risks losing ground to more specialized blockchains. (CryptoTeca)
What this means: Without faster growth in real-world use, BCH’s price gains may not last. If BCH remains mostly a niche payment option, it could fall behind competitors like Solana, which processed 23 times more transactions just yesterday.
Conclusion
Bitcoin Cash’s success in 2026 depends on breaking through the $719 resistance level and turning the CashVM upgrade into real-world adoption. Watch for weekly closes above $666 and whether developers start building on BCH after the upgrade. The big question is: can BCH use its low fees to win more of the payment market before stablecoins take over?
What are people saying about BCH?
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What is the latest news about BCH?
Bitcoin Cash (BCH) shows promising technical signs but calls for cautious optimism. Here’s the latest update:
- Breakout Setup Approaching (January 13, 2026) – BCH is trading near a key resistance level around $650, with fewer sellers in the market, suggesting potential price movement soon.
- $1,000 Price Goal Gains Attention (January 12, 2026) – Experts believe BCH could reach $1,000 if it breaks past $800, especially if certain investment funds get approved.
- Trader Peter Brandt’s Long-Term Outlook (January 12, 2026) – The well-known trader points to a major resistance level at $719 that, if surpassed, could change BCH’s market position.
In-Depth Look
1. Breakout Setup Approaching (January 13, 2026)
Summary:
Bitcoin Cash is trading within a narrowing price range between $600 and $655. Market data shows that sellers are becoming less active near $650, while buyers are stepping up above $655. This could pull the price toward $670–$690 if BCH breaks through resistance. Technical indicators like MACD and Parabolic SAR support this bullish outlook. However, if BCH falls below $635, it might pull back further.
What this means:
This price pattern shows a tug-of-war between buyers and sellers. If BCH closes above $655 with strong trading volume, it could rise 5–10%. But if it fails, the price might test support levels between $600 and $620.
(Source: CoinMarketCap)
2. $1,000 Price Goal Gains Attention (January 12, 2026)
Summary:
Even after a recent 5% drop to $622, BCH is still up 8% over the past month. Analysts point to increased activity from large investors and a surge in daily trading volume ($750 million) as positive signs. Additionally, there’s speculation that Grayscale might convert its BCH trust into an exchange-traded fund (ETF), which could attract more institutional investors.
What this means:
Reaching $1,000 depends on BCH breaking through $800 resistance and gaining demand from ETFs. However, the overall crypto market is slightly down, and BCH’s recent weekly decline shows it’s still influenced by Bitcoin’s price movements.
(Source: CryptoNews)
3. Trader Peter Brandt’s Long-Term Outlook (January 12, 2026)
Summary:
Peter Brandt, a respected trader, highlighted BCH’s long-term resistance level at $719.43. He noted that if BCH closes above this level on a monthly chart, it could signal a significant shift in BCH’s market role. BCH last approached this price in May 2021.
What this means:
Brandt’s focus is on BCH’s bigger picture rather than short-term price moves. Breaking this resistance could bring in investors who have been waiting on the sidelines. If BCH fails to break through, it may continue to be seen mainly as an alternative to Bitcoin rather than a major competitor.
(Source: CoinMarketCap)
Conclusion
Bitcoin Cash is at a critical point between hopeful technical signals and broader market challenges. The $650–$720 price range will be key to watch. Upcoming upgrades like the 2025 Velma hard fork, which will add smart contract capabilities, could boost BCH’s appeal. Still, its price largely depends on Bitcoin’s performance. The question remains: will BCH’s low fees and scaling improvements finally attract sustained institutional interest, or will it continue to be overshadowed by bigger players?
What is expected in the development of BCH?
Bitcoin Cash's upcoming plans focus on improving security and growing its ecosystem.
- Layla Upgrade (May 2026) – Adds protection against future quantum computer threats and improves smart contract features.
- Programmability Expansion (2026) – Provides better tools for developers to build decentralized finance (DeFi) apps and create digital tokens.
Deep Dive
1. Layla Upgrade (May 2026)
Overview: The Layla upgrade (CryptoTeca) introduces new security measures designed to protect against quantum computers, which could one day break current encryption methods. It uses advanced cryptography with 256-bit classical and 128-bit quantum security. The upgrade also enhances smart contracts, allowing more complex financial applications on the Bitcoin Cash network with very low fees. Node operators will need to update their software before this upgrade goes live.
What this means: This upgrade is positive for Bitcoin Cash because quantum-resistant security could make it more attractive to large institutions concerned about future threats. Improved smart contracts may increase activity on the network and expand its usefulness. However, some delays in support from exchanges and liquidity pools might cause temporary issues with network compatibility.
2. Programmability Expansion (2026)
Overview: Building on improvements made in 2025, Bitcoin Cash will offer better developer tools for creating tokens and DeFi applications (BCH-1). This includes upgrades to CashTokens (Bitcoin Cash’s native digital assets) and new standards to make it easier to swap assets across different blockchains.
What this means: This is a positive step for Bitcoin Cash because improved tools can speed up the creation of decentralized apps, leading to more transactions and network use. Still, Bitcoin Cash will face competition from well-established DeFi platforms like Ethereum, especially if it doesn’t offer strong incentives for developers.
Conclusion
Bitcoin Cash’s 2026 roadmap focuses on strengthening security for the future and expanding its capabilities as programmable digital cash. The key question is whether increased developer activity—measured by things like GitHub updates and new app launches—will confirm the success of these upgrades by mid-2026.
What updates are there in the BCH code base?
Bitcoin Cash’s latest updates improve its ability to handle more transactions and support smarter contracts.
- VM Limits & BigInt Activation (May 2025) – Allows more complex smart contracts and precise calculations for decentralized finance (DeFi).
- NEAR Intents Integration (Dec 2025) – Lets users easily swap Bitcoin Cash with over 120 other cryptocurrencies across multiple blockchains.
- Layla Upgrade Prep (May 2026) – Plans to add advanced security against future quantum computers and make the system faster.
Deep Dive
1. VM Limits & BigInt (May 2025)
What happened: In May 2025, Bitcoin Cash upgraded its system by removing limits on how many operations a smart contract can perform and increasing the size of data it can handle. It also introduced BigInt, which allows very precise math calculations.
Why it matters: This means developers can create more advanced financial apps, like lending platforms and automated market makers (AMMs), directly on Bitcoin Cash. Users benefit from very low fees and new features like algorithmic stablecoins.
(Source)
2. NEAR Intents Integration (Dec 2025)
What happened: Bitcoin Cash connected with NEAR Protocol’s Intents system, making it easy to swap BCH with over 120 different cryptocurrencies across more than 25 blockchains, including Ethereum and Solana, without complicated steps or extra fees.
Why it matters: This solves the problem of fragmented liquidity, meaning users can quickly and easily exchange assets like ETH for BCH in just one click. This also opens up bigger markets for merchants and decentralized apps (dApps) without technical hassle.
(Source)
3. Layla Upgrade Prep (May 2026)
What’s planned: The Layla upgrade, set for May 2026, will add quantum-resistant cryptography to protect against future quantum computer threats. It will also improve the virtual machine (CashVM) to run faster and more efficiently.
Why it matters: This makes Bitcoin Cash more secure for long-term use and better suited for high-speed decentralized applications, helping it stand out as a reliable platform for storing assets and running complex apps.
(Source)
Conclusion
Bitcoin Cash is evolving to handle more users and smarter applications while preparing for future security challenges. From boosting DeFi capabilities in 2025 to adding quantum-proof security in 2026, these upgrades could help BCH grow both as a payment method and a smart contract platform. How these changes will affect BCH’s adoption in everyday payments versus advanced apps remains to be seen.
Why did the price of BCH fall?
Bitcoin Cash (BCH) dropped 1.96% in the past 24 hours, falling to $611.80. This performance was weaker than the overall crypto market, which gained 1.52%. Over the past week, BCH has declined by 4.40%, but it’s still up 5.62% over the last 30 days. The main reasons for this include:
- Technical Resistance – BCH hit a price ceiling around $650 and showed signs of weakening momentum.
- Market Rotation – Investors are moving money from altcoins like BCH to Bitcoin, as indicated by the Altcoin Season Index at 29.
- Liquidation Spillover – Large sell-offs in Bitcoin caused traders to reduce risk in altcoins, including BCH.
Deep Dive
1. Technical Resistance (Bearish Impact)
BCH struggled to break above the $650 level, which analysts have identified as a key resistance point. The MACD indicator, which helps track momentum, turned negative, signaling that BCH’s upward movement is losing strength. This rejection often triggers automatic sell orders and discourages new buyers, pushing the price down. Currently, BCH is trading below its 7-day average price of $635, indicating short-term bearish sentiment. If BCH falls below the $611.63 level (a key Fibonacci retracement point), it could drop further toward $594.
2. Market Rotation to Bitcoin (Bearish Impact)
Bitcoin’s share of the total crypto market increased to 58.7%, while the Altcoin Season Index remains low at 29, meaning it’s still “Bitcoin Season.” BCH underperformed Bitcoin, which only saw small price changes despite overall market ups and downs. This suggests that investors are moving funds from altcoins like BCH into Bitcoin, especially since the market sentiment is neutral (Fear/Greed Index at 41). Without strong positive news or catalysts, BCH is more vulnerable to these outflows. This trend may continue until the Altcoin Season Index rises above 50, signaling renewed interest in altcoins.
3. Liquidation Spillover (Bearish Impact)
A sudden drop in Bitcoin’s price caused over $43 million in long position liquidations (forced sales) in Bitcoin trading. This sell-off spilled over into altcoins, including BCH. Data shows BCH’s open interest (the total value of active leveraged positions) dropped by 28.36% over the week, indicating traders are closing out risky positions. As a result, BCH’s trading volume fell by 23.33% in 24 hours, reflecting reduced market activity. Because BCH’s price is closely linked to Bitcoin (correlation of 0.89), Bitcoin’s stability is important for BCH’s recovery.
Conclusion
BCH’s recent price drop is due to hitting technical resistance, investors shifting funds to Bitcoin, and the impact of Bitcoin’s liquidations on altcoins. The Relative Strength Index (RSI) at 45.48 suggests BCH is nearing oversold territory, which could lead to a bounce back. However, for recovery to happen, BCH needs to hold support around $611.
Key point to watch: Will Bitcoin stabilize above $90,000? If so, it could ease selling pressure on altcoins like BCH and help their prices recover.