Bitcoin Cash/Tether (BCHUSDT) Market Overview: 2025-09-16

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• Bitcoin Cash/Tether traded in a narrow range overnight but saw a late surge in volatility ahead of the 12:00 ET close.
• A key bullish 15-minute candle formed just before 06:00 ET pushed the pair to a 24-hour high of 596.2.
• Volume spiked in the early morning hours, confirming strength in the 594.0–596.2 range.
• RSI remained in overbought territory, suggesting potential for near-term correction.
• Price tested a strong support level at 590.0 multiple times, with mixed outcomes.

Bitcoin Cash/Tether (BCHUSDT) opened at 592.1 at 12:00 ET-1 and traded between 587.8 and 596.2 over the 24-hour period before closing at 590.7 at 12:00 ET. The pair saw a total traded volume of 14,226.15 BCH and a notional turnover of $8,426,141.90 (based on average price of $592.46), highlighting increased activity in the final 6 hours of the cycle.

Structure & Formations

Price action on the 15-minute chart displayed a clear bullish bias in the early morning hours, with a strong green candle at 06:00 ET printing a high of 596.2 after a sharp rally from 594.3. This candle appears to form a bullish continuation pattern, confirming the upward momentum from the prior day. In the afternoon, a bearish engulfing pattern formed at 14:30 ET, as price declined from 593.2 to 590.7. This pattern could signal short-term bearish sentiment, though it remains unconfirmed until price breaks below 590.0.

A key support zone between 590.0 and 590.6 was tested multiple times, with price bouncing off the lower end on three occasions, most notably at 03:00 ET and 04:30 ET. However, at 11:15 ET, a strong bearish candle opened at 592.2 and closed at 590.9, indicating a potential breakdown in bullish conviction.

Moving Averages

On the 15-minute timeframe, the 20-period and 50-period SMAs showed a bullish crossover at 05:45 ET as price surged past 594.6, reinforcing the morning rally. However, by midday, the 50SMA began to pull away from the 20SMA, suggesting a potential bearish divergence ahead of the 14:30 ET bearish engulfing candle.

On the daily chart, the 50-period SMA sits at 591.0, just above the 200-period SMA of 589.5, suggesting a long-term bullish trend. Price remains above both, indicating a healthy position relative to key moving averages.

MACD & RSI

The MACD crossed above the signal line early in the morning at 05:30 ET, signaling a bullish momentum shift. Positive momentum continued until 06:30 ET, after which the MACD began to diverge from price action, peaking at 06:15 ET before declining. This divergence may signal an overextended move.

The RSI moved into overbought territory (above 70) at 06:00 ET and remained there for nearly 3 hours, indicating that the rally may be overextended. By 09:30 ET, the RSI had fallen below 60, suggesting a potential correction or consolidation phase ahead.

Bollinger Bands

Price remained within the Bollinger Bands for most of the session, with a brief expansion observed around 06:00 ET as volatility spiked. Price peaked near the upper band during the morning rally, closing the session just below the band's upper edge. The bands are currently wider than average, indicating increased volatility, which could persist into the next 24-hour cycle.

Volume & Turnover

The largest volume spike occurred at 06:00 ET, where 238.734 BCH traded hands as the pair broke through 595.1 toward its 24-hour high. This was confirmed by a sharp increase in notional turnover, aligning with the price action.

However, from 07:30 ET onward, volume began to decline despite continued price movement, suggesting a weakening of conviction. The divergence between price and volume in the afternoon hours could indicate a potential pullback, especially if the 590.0 level breaks.

Fibonacci Retracements

A key Fibonacci retracement level at 593.6 (38.2% level) was tested multiple times throughout the session, with price bouncing off it during the morning rally. The 61.8% level at 589.0 was approached but not broken, with price closing near it, indicating its strength as a potential support line.

Backtest Hypothesis

A potential backtesting strategy could involve entering long positions at the 590.0 support level with a stop loss placed below 589.0 and a take profit at 594.6, based on the morning’s bullish momentum and the strong volume confirmation. The strategy would aim to capitalize on the 590.0–594.6 range, which appears to be a key trading corridor. Using a 15-minute chart, a trader could look for bullish engulfing or hammer patterns at the 590.0 level as a confirmation signal.