Market Overview: Bitcoin Cash/Tether (BCHUSDT) on 2025-12-29

Summary
• BCHUSDT dropped sharply from $632 to $614 before stabilizing near $601.
• A bearish engulfing pattern emerged mid-session, confirming a key breakdown.
• High volume during the selloff validates bearish momentum.
• RSI entered oversold territory, suggesting potential for a short-term rebound.
• Bollinger Bands tightened before the drop, signaling increased volatility.

Bitcoin Cash/Tether (BCHUSDT) opened at $631.2 on 2025-12-28 at 12:00 ET, reached a high of $633.7, dropped to a low of $598.5, and closed at $599.8 on 2025-12-29 at 12:00 ET. The 24-hour volume was 25,005.02 BCH, with a notional turnover of $15,045,333.

Structure and Candlestick Formations

The price action displayed a bearish engulfing pattern around 18:30 ET on the 5-minute chart, confirming a breakdown from key resistance near $633. A doji formed at the bottom of the selloff, hinting at a possible short-term pause.

Moving Averages and Momentum

The 20-period and 50-period moving averages on the 5-minute chart both remained above the price throughout the selloff, reinforcing bearish bias. RSI dipped below 30 by the close, indicating oversold conditions, while the MACD showed bearish divergence with price, suggesting continued downward pressure.

Volatility and Bollinger Bands

Bollinger Bands were relatively narrow in the early part of the session, indicating consolidation. The sharp drop in the afternoon broke out of the bands to the downside, confirming heightened volatility and bearish momentum.

Volume and Turnover

Volume surged during the selloff, with a massive 15,510.294 BCH traded in the 5-minute bar at 09:45 ET, indicating strong bearish conviction. Notional turnover aligned with volume spikes, showing no signs of divergence.

Fibonacci Retracements

On the 5-minute chart, the pullback from $633 to $614 hit the 61.8% Fibonacci level. The final consolidation near $601 may represent a 78.6% retracement of the intraday move, suggesting a possible short-term pause.

The market appears to be entering a period of potential consolidation or a short-term rebound from oversold RSI conditions. However, a break below $600 could signal further downside. Investors should watch for signs of bullish confirmation in the next 24 hours.