Market Overview: Bitcoin Cash/Tether (BCHUSDT) on 2025-12-07

Summary
• Price tested key resistance at $590.3 before retreating to consolidate near $580.
• Momentum waned after a late surge, with RSI dipping toward oversold levels.
• Volatility expanded mid-session, with a sharp selloff triggering a 6.4% drop from session highs.

Opening Snapshot

At 12:00 ET–1 on December 6, Bitcoin Cash/Tether (BCHUSDT) opened at $584.6 and reached an intraday high of $595.7 before closing at $579.2 as of 12:00 ET on December 7. The 24-hour session saw a total volume of 18,683.15 BCH and a notional turnover of approximately $10.6 million, reflecting heightened activity during the late afternoon and early evening hours.

Structure and Patterns

Price action displayed a distinct bearish reversal pattern around 09:30 ET, as a long upper wick and negative close signaled rejection of the prior upward wave. Key resistance levels formed near $590.3 and $593.5, with strong support at $575.6 and $573.7. A doji formed near $577.3, indicating indecision, while a bullish engulfing pattern at $587.4 hinted at potential short-term buying pressure.

Moving Averages and Momentum

Short-term 20-period and 50-period moving averages on the 5-minute chart crossed bearishly during the early selloff, confirming downward momentum. Daily 50/100/200 moving averages remained aligned in a bullish bias but failed to provide immediate support during the sharp drop. The RSI dipped below 30 during the afternoon session, suggesting oversold conditions, though a lack of follow-through buying kept upward potential limited.

Volatility and Bollinger Bands

Bollinger Bands expanded significantly between 03:00 and 07:00 ET, coinciding with a strong rally to $593.5. Price then collapsed back toward the lower band, hitting $573.7 as volatility spiked. A contraction in band width followed the consolidation phase, indicating a potential pause in directional movement.

Volume and Turnover Analysis

Volumes surged during the early sell-off, with the largest 5-minute candle at 09:30 ET recording 1,762.605 BCH traded. Turnover and price moved in alignment during this period, suggesting genuine bearish conviction. However, a divergence emerged in the late session as volume dropped despite a modest rebound, hinting at weakening follow-through.

Fibonacci Retracements

Fibonacci levels on the 5-minute chart highlighted key retracement levels at 38.2% ($590.3) and 61.8% ($586.6), both of which were tested but failed to hold. On the daily chart, the 50% retracement level of the prior week’s rally sits at $582.4, a zone likely to see renewed action.

BCHUSDT may test the 50% Fibonacci and 20-period MA in the next 24 hours, with a potential rebound toward $585–588 if buyers step in. However, risk remains to the downside should support at $573.7 break, potentially extending the correction further. Investors should monitor volume for signs of conviction or capitulation.