Bitcoin Cash (BCH) may drop to 450 USD as pessimistic sentiment engulfs the market.

The price of Bitcoin Cash (BCH) is currently fluctuating around 508 USD on Tuesday, after being rejected by the support line that the price previously broke down. Poor signals from on-chain data and the derivatives market, combined with weakened investor sentiment, are increasing the risk of a deeper correction, as bears seem to be targeting the important support zone around the 450 USD mark.

On-chain and derive data show the bearish momentum of Bitcoin Cash

According to data from Santiment, the Social Dominance index of Bitcoin Cash (BCH) continues to signal negativity, reinforcing the bearish outlook. This index measures the rate of discussion about BCH compared to all other cryptocurrency-related topics. Since October 25, this rate has plummeted sharply from 0.76% to just 0.15% — the lowest level in 2024 and also a new low since July 2023. This trend clearly reflects a decline in investor interest as well as a cooling off in community activity surrounding Bitcoin Cash.

BCH's social dominance chart | Source: SantimentIn the derivatives market, data from Coinglass shows that open contracts (OI) for BCH futures have dropped to 148.18 million USD on Tuesday, significantly lower than the 200 million USD recorded on October 4. The ongoing decline in OI since September indicates that speculative capital is withdrawing, reinforcing a cautious and pessimistic sentiment among traders regarding BCH.

Open contract chart of Bitcoin Cash | Source: CoinglassNotably, the funding rate indicator from Coinglass shows that the Short( side is clearly dominating over the Long) side. This indicator turned negative at -0.0039% on Tuesday, meaning the Short side has to pay fees to the Long side to maintain their positions. In the past, whenever the funding rate reversed from positive to negative, the price of BCH typically entered strong downward phases, reflecting a significant shift in market sentiment.

Funding rate chart BCH | Source: Coinglass## Bitcoin Cash price forecast: Bears target 450 USD

Last week, the price of Bitcoin Cash (BCH) was rejected at the upward trend line that the price had previously broken down, causing this coin to decrease by 4%. Notably, this trend line coincides with the 78.6% Fibonacci retracement level, measured from the April low at 249.4 USD to the September high at 651 USD, corresponding to a strong resistance zone around 565.1 USD.

As we enter the beginning of this week, BCH continues to face selling pressure, dropping more than 5% on Monday. At the time of writing on Tuesday (, the price is fluctuating around the 508 USD mark. If it closes below the Fibonacci 61.8% level at 497.6 USD, the bearish trend could extend to the next support zone around 450.2 USD.

![])https://img-cdn.gateio.im/webp-social/moments-5469a286dea3d5c0121a6fc77fcebcf9.webp(BTC/USDT daily chart | Source: TradingViewTechnically, the daily RSI indicator is at 43, below the neutral threshold of 50, indicating that bearish momentum is prevailing. Meanwhile, the MACD lines are converging, and the short green histogram bars are diminishing – a sign that buying pressure is clearly weakening.

On the contrary, if BCH maintains support around 497.6 USD and rebounds, this coin may extend its recovery towards the 100-day EMA at 537.1 USD, thereby reaffirming its ability to regain upward momentum in the short term.

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