Why did the price of BCH fall?
Bitcoin Cash (BCH) dropped 3.75% in the past 24 hours, falling to $593.11. This decline was sharper than the overall crypto market, which fell by 1.02%, and extended BCH’s weekly loss to 6.62%. Three main reasons explain this move:
- Profit-taking from altcoins – Investors moved money from altcoins like BCH back into Bitcoin, driven by a trend called "Bitcoin Season."
- Technical breakdown – BCH’s price fell below an important support level near $600, triggering automatic sell orders.
- Neutral news impact – No major positive news came out to counter the downward trend, despite ongoing long-term improvements to the network.
Deep Dive
1. Market Shift Toward Bitcoin (Negative for BCH)
Overview:
Money flowed strongly into Bitcoin, pushing Bitcoin’s market share (BTC dominance) up to 59.1%, a 0.13% increase in one day. At the same time, the Altcoin Season Index dropped to 24 out of 100, showing that investors were pulling back from altcoins after Bitcoin’s recent rise to around $97,000.
What this means:
As a top-15 altcoin, BCH experienced heavier selling pressure. Historically, altcoins tend to underperform during "Bitcoin Season," especially when Bitcoin’s price stays near big psychological numbers like $100,000. While the overall crypto market cap fell by 1.02%, BCH’s bigger drop shows it was more sensitive to this shift in investor sentiment.
What to watch:
Keep an eye on the Altcoin Season Index. If it rises above 40 and stays there, it could mean investors are starting to move money back into altcoins like BCH.
2. Breaking Key Price Support (Negative for BCH)
Overview:
BCH’s price fell below the important $600 support level and its 30-day moving average (around $608.67). This triggered more selling, pushing the price down to about $589. Technical indicators like the RSI (Relative Strength Index) dropped to 30.8, signaling the coin is oversold, and the MACD (Moving Average Convergence Divergence) showed a bearish crossover, indicating downward momentum.
What this means:
Traders who use technical analysis saw this breakdown as a sign of short-term weakness. The next important support level is at $582.07, based on the 61.8% Fibonacci retracement—a common tool used to predict price levels. If BCH holds this level, prices might stabilize. If not, the price could drop further toward the 200-day moving average near $556. Trading volume stayed high at $949 million, showing strong conviction behind the sell-off.
What to watch:
A daily closing price above $600 would challenge the current bearish trend and could signal a potential recovery.
Conclusion
Bitcoin Cash’s recent price drop is mainly due to investors shifting funds back to Bitcoin and technical sell-offs triggered by breaking key support levels. These short-term pressures outweigh BCH’s ongoing long-term improvements, such as upgrades to make its cryptography more secure against future quantum computers. Traders should watch Bitcoin’s market dominance and BCH’s $582 support level closely for signs that the price might stabilize.
Key question: Can BCH hold the $582 support level as Bitcoin’s dominance continues to rise?
What could affect the price of BCH?
Bitcoin Cash is balancing upcoming technical improvements with shifts in the market.
- May 2026 Protocol Upgrade – New features like quantum-resistant security and smart contracts could renew developer interest.
- Whale Buying Trends – Large investors continue to buy, showing confidence despite short-term ups and downs.
- Altcoin Market Changes – Bitcoin Cash’s performance compared to newer cryptocurrencies depends on how useful it proves to be.
Deep Dive
1. Protocol Upgrades (Positive Outlook)
Overview: The Layla upgrade scheduled for May 2026 will add quantum-resistant cryptography and improve the CashVM system. This will allow Bitcoin Cash to support more complex decentralized finance (DeFi) applications and enable cross-chain transactions through integration with the NEAR Protocol. Essentially, BCH will function both as a payment network and a smart contract platform.
What this means: If these upgrades work well, developers looking for low-cost transaction options might choose BCH, increasing demand for the coin. A similar event happened in Q3 2025 when BCH’s value rose 30% after the launch of CashTokens (CoinMarketCap).
2. Whale Activity & Market Structure (Mixed Signals)
Overview: Data shows that large holders, or “whales,” bought 66,040 BCH (about $39 million) in January 2026—the biggest single-day purchase since July 2025. However, BCH is facing resistance at $635, and technical indicators like the RSI14 at 44.52 suggest the market momentum is neutral.
What this means: While big investors are showing interest, BCH’s price is still below a key moving average ($556), which could lead to sell-offs if it doesn’t improve. Breaking above $668, the high from 2025, might encourage more buyers to jump in.
3. Altcoin Market Rotation (Neutral to Slightly Negative)
Overview: Bitcoin’s dominance in the market is high at 59.09%, limiting the money flowing into altcoins like BCH. Over the past week, BCH has dropped 7.3% while Bitcoin gained 3.75%. Privacy-focused coins like Monero (XMR) have recently surpassed BCH in market value.
What this means: For BCH to stay relevant, it needs to show real-world adoption, such as more merchants accepting it in regions like Latin America and Asia. Without new reasons for investors to buy, BCH risks being seen as an older altcoin losing ground to newer projects.
Conclusion
Bitcoin Cash’s path in 2026 depends on successfully rolling out its technical upgrades while dealing with Bitcoin’s strong market position. The May upgrade offers promising potential, but traders should watch the $560–$635 price range closely for signs of a breakout. It remains to be seen if whale buying will continue through the market’s ups and downs in early 2026.
What are people saying about BCH?
Bitcoin Cash (BCH) is drawing attention as traders watch for a potential price breakout and upcoming network upgrades. However, some technical indicators suggest caution. Here’s the latest:
- $650 Breakout Watch – Analysts say if BCH breaks above $650, it could climb past $720
- CashVM Upgrade Buzz – A major network update planned for February is boosting optimism
- Bearish Signals – Some technical tools warn of possible downward pressure despite recent price gains
In-Depth Look
1. @bpaynews: Bullish Outlook Toward $720 Before Upgrade
"Expecting BCH to reach $720-$750 by February as the CashVM upgrade nears... RSI at a neutral 57.79 with key resistance at $655"
– @bpaynews (2K followers · 112K+ tweets · Jan 9, 2026)
See original tweet
What this means: The upcoming network upgrade could increase BCH’s usefulness, potentially driving demand higher. But the $655 price level is a critical hurdle that BCH must overcome to continue rising.
2. @raremints_: Institutional Interest Adds Neutral Pressure
"Coinbase Derivatives offering regulated access brings more institutional money... a clean break above $650 might trigger a doubling in price"
– @raremints (27K followers · 1.2K tweets · Dec 24, 2025)
[See original tweet](https://x.com/raremints/status/2003738146383736838)
What this means: Institutional involvement through Coinbase adds credibility and liquidity, but BCH needs to clearly break above $650 to confirm a strong upward move.
3. @crypto_ai_ta: Bearish Technical Warning: EMA Death Cross
"Price trading below the 200-day EMA ($521.6)... bearish MACD and RSI divergence indicate possible continued downtrend"
– @crypto_ai_ta (507 followers · 6.5K tweets · Dec 22, 2025)
See original tweet
What this means: BCH trading below its 200-day moving average is a negative sign, potentially triggering automated selling and further price drops.
Summary
The outlook for Bitcoin Cash is mixed. Positive news around the CashVM upgrade and new institutional products supports a bullish case. However, technical indicators like the failure to break $650 resistance and the EMA death cross suggest caution. Traders should watch the $566-$595 price range closely. A weekly close above $620 could confirm upward momentum, while falling below $520 might signal a stronger downtrend. Also, keep an eye on derivatives data—open interest increased by 14.8% this week (CoinGlass), indicating more leveraged trading as BCH approaches key technical levels.
What is the latest news about BCH?
Bitcoin Cash (BCH) is currently influenced by a mix of technical factors and profit-taking following its recent halving event. Here’s a quick summary:
- Profit-Taking After Halving (January 14, 2026) – BCH’s price dropped 5% after its second halving, cooling off a strong 30% rally in 2025.
- Monero Surpasses BCH (January 14, 2026) – Privacy-focused coin Monero (XMR) overtook BCH in market value, moving BCH down to 11th place.
- NEAR Protocol Integration (December 19, 2025) – BCH was added to NEAR Intents, enabling easier cross-chain swaps with over 25 other blockchain networks.
Deep Dive
1. Profit-Taking After Halving (January 14, 2026)
What happened:
After BCH’s block reward halving reduced the amount of new BCH created per block (to 3.125 BCH), its price fell to about $615. This pulled back some of the gains from a 30% price increase during 2025. The halving event made BCH scarcer, which usually supports higher prices, but many traders sold to lock in profits right after the event.
What it means:
This price drop is a normal short-term reaction and doesn’t mean BCH’s long-term outlook is weak. With fewer new coins entering the market, BCH could see price support over time. Traders are watching key price levels around $589 (support) and $670 (resistance) to gauge future moves. (CoinMarketCap)
2. Monero Surpasses BCH (January 14, 2026)
What happened:
Monero (XMR), a cryptocurrency focused on privacy, increased in value by 10.55%, pushing its market cap to $12.9 billion—higher than BCH’s $11.8 billion. This shift reflects growing interest in privacy features amid ongoing regulatory discussions.
What it means:
Investors are showing more interest in privacy-focused coins like Monero. While BCH continues to focus on being a fast and scalable payment option, it now faces more competition for attention and investment. BCH remains a top-15 cryptocurrency but needs to highlight its unique strengths to stay competitive. (CoinMarketCap)
3. NEAR Protocol Integration (December 19, 2025)
What happened:
BCH was integrated into NEAR Intents, a platform that allows users to swap tokens across more than 25 different blockchains—including Ethereum and Solana—without dealing with complicated bridging or transaction fees.
What it means:
This integration makes BCH more accessible and liquid, which could attract users interested in decentralized finance (DeFi). However, the success of this feature depends on how many developers adopt NEAR’s easy-to-use 1Click API to build BCH-compatible applications. (NEAR Protocol)
Conclusion
Bitcoin Cash is navigating a mix of short-term price swings following its halving, increased competition from privacy coins like Monero, and new opportunities through cross-chain integrations like NEAR Protocol. While volatility is expected, BCH’s position as a scalable payment network remains strong. The key question is whether expanding its cross-chain capabilities will help BCH maintain relevance as market excitement shifts.
What is expected in the development of BCH?
Bitcoin Cash is making important updates with these key milestones:
- CashVM Upgrade (May 2026) – Adds advanced security that protects against future quantum computer threats and introduces smart contracts similar to Ethereum, all while keeping transaction fees under one cent.
- NEAR Protocol Integration (Ongoing) – Allows easy swapping of Bitcoin Cash with over 120 other digital assets across more than 25 blockchains, simplifying cross-chain transactions.
- VM Limits Expansion (2026) – Plans to increase computing power for running more complex decentralized finance (DeFi) applications on the network.
Detailed Overview
1. CashVM Upgrade (May 2026)
What it is: This upgrade brings quantum-resistant security, meaning Bitcoin Cash will be protected against future hacking methods that use quantum computers. It also enhances smart contract features, making them as capable as those on Ethereum, but with much lower fees—less than a penny per transaction. This makes Bitcoin Cash a strong, secure, and affordable platform for developers and users alike. The upgrade has gone through thorough testing and community approval. Source
Why it matters: This is a positive step for Bitcoin Cash because it future-proofs the network and could attract developers interested in building decentralized finance (DeFi) projects. However, success depends on how easily developers adopt these new features.
2. NEAR Protocol Integration (Ongoing)
What it is: Bitcoin Cash now works with NEAR Intents on its main network, enabling smooth swaps between BCH and more than 120 other digital assets across 25+ blockchains. This removes the usual complications and extra fees involved in moving assets between different blockchains. Source
Why it matters: This integration is good news for Bitcoin Cash because it makes the network more useful in the growing multi-chain world, potentially increasing how much BCH is used. The main risk is depending on NEAR’s technology to stay reliable.
3. VM Limits Expansion (2026)
What it is: After a big upgrade in 2025 that boosted Bitcoin Cash’s computing power by 100 times, developers plan to expand these limits even more in 2026. This will support advanced DeFi applications like automated market makers and lending platforms, all while keeping transaction costs very low. Source
Why it matters: This is somewhat positive for Bitcoin Cash because it opens the door for more complex apps. However, its success depends on whether developers choose BCH over other popular platforms like Solana. Watching Bitcoin Cash’s DeFi activity and user numbers will show how well this works.
Conclusion
Bitcoin Cash is focusing on improving security, making it easier to interact with other blockchains, and preparing for more advanced DeFi applications. These technical upgrades could help BCH compete with other major blockchain platforms, but the real test will be whether they lead to more users and developers adopting the network.
What updates are there in the BCH code base?
Bitcoin Cash's recent updates focus on major improvements to smart contracts and security.
- Quantum-Safe CashVM & Smart Contracts (May 2026) – A future upgrade that adds quantum-resistant security and smart contracts similar to Ethereum.
- VM Limits & BigInt Activation (May 15, 2025) – Increased computing power and support for much larger numbers in scripts.
Deep Dive
1. Quantum-Safe CashVM & Smart Contracts (May 2026)
Overview:
This upgrade, planned for May 2026, will introduce advanced security that protects against future quantum computers, using strong encryption standards. It will also add built-in smart contract features, allowing Bitcoin Cash to support complex decentralized finance (DeFi) applications while keeping transaction fees very low.
What this means:
This is a positive development for Bitcoin Cash because it opens the door to more advanced financial tools and applications, while protecting users from emerging security risks posed by quantum computing. It combines strong security with the low fees Bitcoin Cash is known for. (Source)
2. VM Limits & BigInt Activation (May 15, 2025)
Overview:
This upgrade, which took effect in May 2025, greatly expanded the capabilities of Bitcoin Cash’s scripting system. It increased the number of allowed operations from 201 to over 10,000, boosted the size of the processing stack by 19 times, and enabled support for very large numbers (up to 80,000 bits). It also made node processing 50% more efficient.
What this means:
This improvement allows developers to create more sophisticated financial applications, such as stablecoins and lending platforms, directly on the Bitcoin Cash blockchain. Users benefit from more powerful decentralized apps (dApps) and smarter contracts. (Source)
Conclusion
Bitcoin Cash is steadily evolving from a simple payment system into a more versatile smart contract platform. The 2025 upgrades have already expanded what’s possible on the network, and the upcoming 2026 quantum-safe upgrade will add critical security for the future. It will be interesting to see how these technical improvements encourage more developers to build on Bitcoin Cash in 2026.