Bitcoin Cash Defies Bearish Sentiment as It Challenges Bitcoin’s Stalled $117K Wall

Bitcoin Cash (BCH) has surged past $644, marking a notable increase since April 2024. This rally defies the prevailing bearish sentiment that had been dominating the market for the 16th-ranked cryptocurrency. Santiment data indicates that BCH has gained approximately 7% against Bitcoin, fueled by this contrarian momentum. The rally is particularly striking as it coincides with Bitcoin (BTC) struggling against a significant resistance level near $117,000.

Glassnode's heatmap reveals a concentrated supply zone around $117,000 for Bitcoin, indicating that this is a critical price level for the asset. The on-chain data suggests that Bitcoin has faced considerable resistance at this level, with liquidity clustered to slow further advances. The CBD (Cost Basis Distribution) indicator further underlines the importance of this resistance by highlighting where significant accumulation has occurred for Bitcoin in the past.

While Bitcoin Cash's surge has been impressive, Bitcoin's challenges at $117,000 underscore the complexities of the crypto market. Technical indicators for Bitcoin, such as the MACD line attempting a bullish crossover and the RSI remaining in neutral-bullish territory, suggest there is potential for further upside before exhaustion sets in. However, breaking through this resistance level could be pivotal for Bitcoin's next move.

The market dynamics are further complicated by the movement of dormant 2014 Bitcoin wallets. One such wallet, holding 1,000 BTC, has recently moved its stash, valued at over $116 million. These awakenings can introduce sudden liquidity jolts, potentially stirring volatility as markets test critical resistance levels. This development adds a layer of uncertainty and could influence Bitcoin's trajectory as it attempts to break through the $117,000 level.

In terms of market fundamentals, Bitcoin Cash and Bitcoin diverge significantly. Bitcoin Cash, with its larger block size of 32 MB compared to Bitcoin's 1 MB, is designed to handle more transactions per second, potentially offering faster confirmation times and lower fees. This scalability advantage positions Bitcoin Cash as a contender in the digital payments space, where it can facilitate quicker and cheaper transactions. However, Bitcoin's dominance in terms of market cap and investor confidence remains unchallenged.

The recent Bitcoin Cash rally also stands in contrast to the broader market sentiment. Typically, when fear peaks among traders, it can lead to sharp countertrend rallies, as seen in the case of Bitcoin Cash. This contrarian setup, where traders doubt BCH's staying power, has provided fresh momentum to the asset, highlighting the psychological aspect of market movements.

Moreover, Bitcoin Cash's price performance relative to Bitcoin and other cryptocurrencies is a topic of interest. As of September 2025, Bitcoin Cash's price has seen a 12.39% increase over the past 30 days. In comparison, Bitcoin's 30-day price change has been more modest at 1.50%. These figures suggest that while Bitcoin Cash has shown stronger short-term performance, it remains a smaller asset in the broader crypto landscape.

The debate surrounding Bitcoin Cash's scalability and transaction processing capabilities has been a focal point in the crypto community. Bitcoin Cash's proponents argue that its larger block size allows for more transactions per second, making it a more viable option for everyday transactions. However, critics point out that Bitcoin's smaller block size contributes to its security by enabling more participants to run nodes, thus maintaining a decentralized network.

In conclusion, the recent Bitcoin Cash rally has defied bearish sentiment and provided a strong countertrend move, outpacing Bitcoin in short-term performance. Meanwhile, Bitcoin faces a formidable resistance level at $117,000, with on-chain data highlighting the significance of this price point. The market dynamics are further influenced by the movement of dormant Bitcoin wallets and the inherent differences between Bitcoin Cash and Bitcoin in terms of scalability, transaction fees, and network security. As the crypto market continues to evolve, the interplay between these factors will remain crucial in determining the future trajectories of both Bitcoin and Bitcoin Cash.