Bitcoin Cash (BCH) is currently testing a key support level at $554 after breaking below its ascending channel, which had long served as a buying support.
Technical Breakdown at Crucial Level
Recently, BCH fell below its established ascending channel on the daily chart, introducing uncertainty about future momentum. According to Alpha Crypto Signal, reclaiming the channel remains vital. As of now, the price is around $554-$555, aligning with the 50-day simple moving average. A close above this level could restore bullish structure in the short term.
Market Sentiment Through Derivatives Data
The derivatives market indicates a cautious optimism. BCH trading volume increased by 7.15% to $322.26M, while open interest grew by 2.97% to $527.67M. The long/short ratio stands at approximately 1.0509, reflecting a marginal bias toward long positions. Top traders on Binance show a ratio of 3.6266 favoring longs, indicating confidence among large-volume traders, despite retail caution.
Liquidations Show Gradual Market Adjustment
Liquidation data over the past 24 hours totals $152.92K, dominated by short losses of $96.31K versus $56.61K for longs. This suggests that bulls absorbed more pressure. Mild liquidation activity on shorter time frames indicates that price adjustments are occurring gradually rather than in sharp, high-volume liquidations typically seen during panic.
The current situation with Bitcoin Cash highlights the importance of the $554 support level and general market expectations. While institutional traders show confidence, retail participants remain cautious.
