Bitcoin Cash Falls 2.97% Amid Short Liquidations and Market Uncertainty

Bitcoin Cash Sees Short Liquidation Surge
Bitcoin Cash (BCH) recorded a 2.97% decline within 24 hours on December 29, 2025, falling to $604.20. Despite this drop, the coin has shown resilience in the broader market, with gains of 2.17% in the last seven days and 11.67% over the past month. This performance contrasts with a sharp liquidation event where short positions lost $169,260 as BCH surged from $590 to breach $600 within a four-hour period.

The upward movement caught bearish traders off guard, triggering a technical breakout that led to significant losses for those who had bet against the asset. CoinGlass data highlights the imbalance in liquidations, with short sellers bearing the brunt of the unexpected price rise.

Price Volatility and Market Sentiment
BCH’s price action has been characterized by both volatility and uncertainty. The coin briefly reached an intraday high of $616.30 before retracting slightly due to a lack of volume support. Trading volume has declined by 15.07% to $350.77 million, signaling cautious investor behavior. Although some analysts have projected BCH could rise to $650–$720, the asset has remained relatively range-bound, with a 30-day high of $626.

The Relative Strength Index (RSI) for Bitcoin Cash currently stands at 56, suggesting a neutral market posture. Further bullish momentum could materialize if the market sees increased volume and community adoption. A key development in recent days involved Erik Voorhees, CEO of ShapeShift, who reactivated a long-dormant Ethereum wallet and converted the funds to BCH. This move has sparked speculation about a potential shift in market sentiment, with some interpreting it as a bullish signal for BCH.

Market Cap Challenges and Rivalry with Cardano
Bitcoin Cash is currently $510 million away from surpassing Cardano (ADA) in market capitalization. This is a notable challenge, as Cardano has seen a 18.24% drop in the last 30 days. In contrast, BCH has added over 12% in the same period. A sustained upward trend could see BCH replace ADA in the top 10 cryptocurrency rankings. However, such a shift remains contingent on continued positive price momentum and broader market adoption.

Technical and Strategic Implications
From a technical standpoint, Bitcoin Cash appears to have room for further gains. The absence of extreme overbought conditions on RSI, combined with the potential for a breakout above $626, leaves the door open for a new phase of bullish movement. Market watchers will be closely monitoring volume patterns and community activity to gauge whether the current price action reflects a broader trend or a temporary correction.

The recent liquidation event underscores the market’s sensitivity to short-term price movements, particularly in a market dominated by leveraged positions. While BCH has shown resilience, its path forward remains contingent on maintaining strong technical indicators and favorable market sentiment.