Bitcoin Cash Price Could Rally 14% As Traders Exit Crowded Risk Trades

Key Insights

• Bitcoin Cash (BCH) price is showing relative strength by holding near $530 while the broader crypto market has fallen more than 6%.
• Early money inflows and low leverage are limiting downside risk, with CMF turning positive near 0.03 and no signs of heavy liquidation pressure.
• A break above $551 could open a 14% move toward $603, while losing $519 would weaken the current bullish setup.

Bitcoin Cash price has been acting differently from most of the market over the past few weeks.  While most major coins have been slipping lower day after day, BCH has stayed steady near $530. It has moved around that level, tested it, dipped slightly, and then come back again.

Over the past day, the broader crypto market dropped more than 6%, with many altcoins following the move. Some fell much more but Bitcoin Cash price didn’t.

Bitcoin Cash Price Shows Strength After the January Drop

In late January, Bitcoin Cash price fell hard. It dropped from around $680 to nearly $467 in under two weeks. That move followed the broader market sell-off. Many traders exited during that phase.

A lot of short-term buyers were forced out. After that drop, something changed.

Instead of continuing lower, BCH price started to stabilize. Buyers showed up near $467. Over the next few weeks, the price climbed back toward $530.

That move added almost 14%. More important than the bounce is what happened after. Price did not give back those gains. It stayed in the same zone even when other coins kept falling. That usually means selling pressure has slowed.

Most traders who wanted to sell already sold. New sellers are not rushing in.

Money Flow and Leverage Remain Supportive

Price alone does not explain why BCH is holding up. The money flow data tells part of the story.

Chaikin Money Flow recently turned positive and is near 0.03. This shows that more capital is entering BCH than leaving it.

It looks more like slow accumulation. Money seems to be rotating out from other crypto assets to Bitcoin Cash (BCH).

Bitcoin Cash (BCH) Price | Source: TradingView

At the same time, leverage in Bitcoin Cash markets remains low. Open interest is steady. Funding rates are quiet. There is no crowd chasing longs.

BCH Open Interest Dropping | Source: CoinGlass

That is crucial, as most big crashes happen when leverage builds up first. Too many traders borrow money.

Price drops slightly. Liquidations start. And selling eventually feeds more selling.

BCH has avoided this cycle to date. With fewer leveraged positions, price moves stay controlled. This is one reason why Bitcoin Cash price has not collapsed with the rest of the market.

Key BCH Price Levels To Track

Right now, the Bitcoin Cash price is stuck between two important levels. Resistance sits near $551.

This area has blocked rallies several times before. Sellers usually become active there. If BCH can move above $551 and stay there, the structure improves. In that case, the price could move toward $603.

That would mean another 14% upside from current levels. On the downside, support sits near $519. If the price drops below that area and fails to recover, the bullish setup weakens.

A breakdown there would open the door for a move back toward $467. For now, the price is moving sideways between these levels.

Bitcoin Cash Price Levels | Source: TradingView

Bitcoin Cash price is not rising because of excitement. It is holding up because behavior is changing.

Leverage is lower. Speculation is weaker. And rotation is happening. Money is moving away from crowded trades and into quieter ones. BCH fits that profile right now.

If capital continues moving away from high-risk trades, Bitcoin Cash price may stay supported. For now, $551 remains the level that could decide the next leg, either up or down

The post Bitcoin Cash Price Could Rally 14% As Traders Exit Crowded Risk Trades appeared first on The Coin Republic.