- The value of Bitcoin Cash fell by 5% on Monday but managed to stabilize above the $345 threshold.
- The price of BCH demonstrated greater resilience compared to BTC, which experienced losses exceeding 8% that day.
- Data from the derivatives market indicates that BCH bullish traders face significant liquidation risks if prices drop below the $339 mark.
The price of Bitcoin Cash declined by 5% on Monday as bulls fought to maintain the critical support level of $345. Data from derivatives markets point to considerable downside risks for BCH if the negative sentiment persists.
Bitcoin Cash (BCH) maintains solid support at $345 as bulls remain in profit
Bitcoin Cash (BCH) experienced a significant decline on Monday following last week’s uptick, which was fueled by increased network activity and speculative buying.
The downturn in the broader market impacted BCH, with negative sentiment arising after the Trump administration failed to clarify crypto budget allocations during the White House Summit on Friday. Additionally, U.S. Nonfarm Payrolls (NFP) data added further bearish pressure across global financial markets, including cryptocurrencies.
Bitcoin Cash Price Analysis | BCHUSD
Despite Monday’s drop, BCH traders showed resilience by holding onto last week’s significant gains. The chart indicates that BCH surged by 45% last week, only to see a decline of 18% over the past four days. In contrast to Bitcoin’s sharper 8% drop, BCH’s relative strength suggests holders are less inclined to panic sell.
Considerable liquidations on the horizon if BCH bears breach $340 support
Data indicates that most short-term BCH traders are enjoying double-digit profits, making them less likely to liquidate their positions than BTC holders or those trading in low-cap altcoins.
Nonetheless, signals from the derivatives market suggest that BCH’s resilience could quickly turn into a sell-off if bearish sentiment escalates.
Bitcoin Cash (BCH) Liquidation Map, Coinglass
Supporting this concern, liquidation data shows that bearish traders have firmly established their presence in BCH markets.
As of Monday, bearish traders have initiated $9.4 million in short positions while only $3.8 million in long contracts remain active.
This imbalance illustrates the dominance of bearish momentum in the short-term market.
However, an examination of the chart reveals that bullish traders have positioned $1.4 million— the largest long leverage positions—around the $339 level.
This suggests that if BCH fails to maintain the $339 support, a wave of liquidations could lead to a significant downward shift, further extending losses in a brief timeframe.
BCH Price Prediction: Ongoing bearish sentiment puts $340 support in jeopardy
The price of Bitcoin Cash is currently trending bearish after nearly a 4% drop in the last 24 hours, indicating that sellers are in control.
The daily chart shows BCH struggling to hold above the $340 support area, with Bollinger Bands narrowing around this point, suggesting a potential volatile move ahead.
A rejection at $392 initiated an 18% retreat, putting BCH at risk of a breakdown if the selling pressure intensifies.
The MACD histogram has begun to roll over, with the blue MACD line crossing downward, signaling that bearish momentum is creeping in.
BCH Price Forecast
However, BCH remains positioned above the lower Bollinger Band, suggesting that short-term downside risk may be limited.
If the $340 support fails, a series of liquidations could amplify losses, with potential targets moving down to $332 and perhaps even $280.
The increased volume seen in the recent downturn indicates that leveraged long positions are being unwound, adding to the downward pressure.
The formation of a Death Cross, where the 50-day moving average drops below the 200-day moving average, further solidifies the bearish outlook.
On the other hand, a robust defense of the $340 level could lead to a rebound.
The last significant rally saw BCH surge 45% within a week, demonstrating that short squeezes can trigger aggressive upward movements.
If buyers regain strength and BCH reclaims $392, a sharp breakout toward $450 could follow, especially if short positions are compelled to close in an environment of low liquidity.