BCH Surges 16% as Fed Rate Cut Sparks Risk-On Sentiment in Crypto Markets
Terrill Dicki Oct 31, 2025 19:26
Bitcoin Cash climbs to $545.20 amid Federal Reserve's second 2025 rate cut and heightened derivatives activity, positioning BCH for potential breakout above key resistance levels.
Quick Take
• BCH trading at $545.20 (up 2.7% in 24h) • Fed's rate cut to 3.75-4.00% driving crypto risk appetite • Bitcoin Cash testing resistance near $580 after 16% weekly surge • Following broader crypto rally alongside Bitcoin's strength
Market Events Driving Bitcoin Cash Price Movement
The Federal Reserve's decision to cut interest rates for the second time in 2025 has created a tailwind for risk assets, with Bitcoin Cash price benefiting significantly from the macro shift. The central bank lowered the benchmark rate to 3.75-4.00% on October 29, despite limited economic data access due to the ongoing government shutdown. This dovish stance, combined with inflation readings of 3.0% year-over-year, has rekindled appetite for alternative assets.
Bitcoin Cash experienced its most significant price movement on October 28, surging 16.2% as macro sentiment shifted and derivatives trading activity accelerated on the network. The rally was notable for attracting both institutional whale activity and retail participation, with traders capitalizing on negative funding rates that had previously pressured BCH price action.
The crypto market also received additional support from Strategy's latest Bitcoin purchase, adding 390 BTC worth $43.4 million to their treasury. While this directly impacts Bitcoin, the institutional endorsement has created positive sentiment spillover effects across major cryptocurrencies, including Bitcoin Cash technical analysis showing improved momentum indicators.
BCH Technical Analysis: Bullish Momentum Building
Price Action Context
BCH price currently trades above its 20-day simple moving average ($515.11) and well above the critical 200-day SMA ($496.89), indicating the longer-term trend remains constructive. The current positioning near $545.20 represents a 9.8% premium to the 50-day moving average ($552.82), though this shows some near-term consolidation pressure.
Trading volume on Binance spot reached $45.2 million over the past 24 hours, suggesting sustained institutional and retail interest following the recent breakout. Bitcoin Cash is closely tracking Bitcoin's movements while maintaining its own technical characteristics, with the correlation remaining strong during this risk-on phase.
Key Technical Indicators
The daily RSI reading of 53.95 places Bitcoin Cash in neutral territory, providing room for further upside without entering overbought conditions. The MACD histogram shows a bullish reading of 8.77, indicating momentum is building despite the negative MACD line at -0.27, suggesting early-stage trend reversal potential.
Bollinger Bands position BCH at 72.4% of the band width, approaching the upper band at $582.40. This positioning typically indicates strong momentum but also suggests approaching short-term resistance levels that traders should monitor closely.
Critical Price Levels for Bitcoin Cash Traders
Immediate Levels (24-48 hours)
• Resistance: $580.00 (Bollinger Band upper boundary and psychological level) • Support: $515.11 (20-day moving average and recent breakout support)
Breakout/Breakdown Scenarios
A decisive break above $580 could target the next major resistance at $651.00, representing the strong resistance level identified in Bitcoin Cash technical analysis. Conversely, failure to hold above the 20-day SMA at $515.11 might see BCH price retreat toward the $443.20 support zone, which currently serves as both immediate and strong support.
BCH Correlation Analysis
Bitcoin Cash is following Bitcoin's lead in the current rally, maintaining approximately 0.8 correlation during this risk-on phase. The Fed's rate cut has benefited both assets similarly, though BCH has shown slightly stronger momentum due to its oversold positioning entering the week.
Traditional market correlations have strengthened, with crypto assets including BCH tracking risk sentiment rather than acting as uncorrelated alternatives. The S&P 500's positive response to dovish Fed policy has created favorable conditions for risk assets across asset classes.
Trading Outlook: Bitcoin Cash Near-Term Prospects
Bullish Case
Sustained break above $580 resistance combined with continued macro support could drive BCH price toward $620-650 range. The improving derivatives activity and whale accumulation patterns suggest institutional interest is building, potentially providing upside momentum through month-end.
Bearish Case
Federal Reserve policy uncertainty and potential government shutdown extension could dampen risk appetite. Technical failure at current resistance levels might trigger profit-taking, with initial support at $515 and more significant support near $443.
Risk Management
Conservative traders should consider stops below $515 to protect against breakdown scenarios. Given the 14-day ATR of $32.97, position sizing should account for Bitcoin Cash's elevated volatility during this breakout attempt. Target taking near $580 resistance appears prudent for swing traders given the technical setup.
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