Foreign media commentators believe that Bitcoin Cash (BCH) has fallen sharply in the past month, wiping out most of its previous gains. The article states that after the breach of the multi-month support level around $300, the market structure has clearly weakened, with selling pressure increasing on both the spot and derivatives sides.
On-chain activity has not improved.
The article notes that on-chain participation in BCH did not show a significant rebound during the decline. The lack of sustained growth in daily active addresses indicates weak user activity and transaction demand. Under these circumstances, even if a rebound occurs, it will be more difficult to establish a sustained upward trend.
Meanwhile, MVRV long/short position indicators softened, reflecting narrowing profit margins for holders and declining market confidence. The article argues that this means investors are less willing to buy at lower prices.
Liquidation pressure emerged between $245 and $260.
Derivatives data also indicates market pressure. The article states that there is a significant cluster of liquidations in the $245 to $260 range, and the recent decline may have triggered the forced liquidation of some leveraged positions, further amplifying price volatility.
With weak on-chain activity, declining investor confidence, and deleveraging occurring simultaneously, the short-term outlook remains bearish. This combination is considered the primary source of pressure currently facing BCH.
After breaking below $300, pay attention to the demand zone below.
The article recalls that BCH had been fluctuating within a wide range for the past few months, failing to regain the $650-$700 resistance zone multiple times. Although support around $300 was held several times, price highs continued to decline, indicating a gradual weakening of buying power.
With the $300 support level breached, the previous consolidation structure has been broken. The article argues that if prices continue to trade below major moving averages and selling volume continues to increase, the next key historical demand zone will be between $180 and $150.
However, if BCH can regain its footing in the $300-$320 range, the current bearish outlook may be weakened. The article states that without a strong rebound, any short-term recovery could still face renewed selling pressure.
