Bitcoin Cash (BCH) continues to hover just below the pivotal $250 resistance level, showing signs of hesitation while other major cryptocurrencies like Bitcoin (BTC) and Solana (SOL) surge to new yearly highs. Despite a broader crypto market rally, BCH remains stuck, raising questions about its near-term price trajectory. Is this consolidation phase setting the stage for a breakout—or a breakdown?
Declining Network Activity Signals Weak Momentum
While the overall cryptocurrency market regains strength, Bitcoin Cash is struggling to keep pace. On-chain data reveals a troubling trend: network activity is rapidly declining, undermining the foundation of any sustainable bullish move.
According to IntoTheBlock, key metrics such as Active Addresses and New Addresses have plummeted in the past week. Active Addresses—representing users engaging in transactions—have dropped by 79%. Meanwhile, New Addresses, which reflect user acquisition and network growth, have fallen by a staggering 85%.
👉 Discover how network activity impacts price momentum and what it means for your holdings.
These metrics are critical indicators of real-world blockchain usage. A sustained drop suggests weakening demand and reduced economic activity on the Bitcoin Cash network. When both existing and new users disengage simultaneously, it often precedes downward price pressure. In this context, BCH’s inability to break above $250 may not be coincidental—it could be a direct reflection of fading user interest.
Transaction Fees Drop Sharply Amid Falling Demand
Another red flag for Bitcoin Cash is the steep decline in transaction fees. The Total Fees generated daily on the BCH network have decreased by 73% over the past seven days, signaling significantly lower transaction volume and user engagement.
Transaction fees serve as a proxy for network utilization. When users transact more frequently—sending payments, executing swaps, or interacting with dApps—they pay fees to validators. A shrinking fee pool indicates fewer transactions and diminished on-chain activity.
This trend is particularly concerning because it suggests that recent price gains were driven more by speculative trading than by fundamental adoption. Without growing utility or increased usage, BCH risks becoming a sidelined asset—even as the broader market advances.
Historically, strong networks like Bitcoin and Ethereum maintain resilient fee income during market upswings. The fact that BCH fees are collapsing during a recovery phase highlights structural weaknesses in its current ecosystem engagement.
On-Chain Data Reveals Strong Resistance at $250
From a technical and on-chain perspective, the $250 level is proving to be a formidable barrier for Bitcoin Cash. One powerful metric that explains this resistance is Global In/Out of the Money (GIOM) data.
GIOM shows where current holders originally bought their BCH. It reveals that approximately 1.25 million addresses purchased 2.09 million BCH at an average entry price of $248 or higher. These holders are now sitting at breakeven or slight losses.
If sentiment turns bearish—or if short-term traders decide to exit—the collective selling pressure from these positions could trigger a pullback. This creates a self-fulfilling resistance zone: the closer price gets to $250, the greater the likelihood of profit-taking and stop-loss activations.
👉 See how smart money behavior influences resistance zones and market reversals.
For a genuine breakout to occur, BCH would need strong buying volume and renewed confidence from both retail and institutional participants. More importantly, it must be supported by rising network fundamentals—not just price speculation.
Can Bitcoin Cash Overcome $300? Next Resistance Looms
Even if Bitcoin Cash manages to break through $250, another major hurdle awaits near **$280–$300**. GIOM data indicates that **1.51 million addresses** hold **968,000 BCH** purchased at an average cost of **$293**.
This cluster represents a dense concentration of supply that could flood the market if price approaches that range without strong demand backing. Clearing this level would require not only momentum but also a significant shift in on-chain behavior—such as rising active addresses, increasing transaction volume, and higher fee income.
Without these supporting factors, any rally toward $300 may stall or reverse quickly. In essence, technical resistance is reinforced by weak fundamentals—a double challenge for the bulls.
FAQ: Understanding Bitcoin Cash’s Price Stagnation
Q: Why is Bitcoin Cash stuck below $250 when other cryptos are rising?
A: While market sentiment is positive overall, BCH lacks fundamental support. Declining active users, falling transaction fees, and high concentrations of break-even sellers at $248 are suppressing upward momentum.
Q: What does "Active Addresses" tell us about BCH’s health?
A: Active Addresses measure real transactional activity. A 79% drop suggests most users aren’t moving or spending BCH, indicating weak network engagement and low demand.
Q: Could Bitcoin Cash still break out above $250?
A: Yes—but only with strong volume and improved on-chain metrics. A breakout without rising fundamentals may be short-lived and vulnerable to reversal.
Q: What happens if BCH breaks above $300?
A: Breaking $300 would signal strong bullish conviction, especially given the large number of holders sitting at a loss in that zone. However, sustained movement above this level requires long-term demand growth.
Q: How reliable is GIOM data for predicting price action?
A: GIOM is highly valuable because it reflects actual holder behavior. Areas with dense concentrations of in-the-money or breakeven holders often act as strong support or resistance zones.
Conclusion: Fundamentals Must Catch Up to Price
Bitcoin Cash stands at a crossroads. The $250 resistance isn’t just a technical level—it’s backed by concrete on-chain evidence of weak demand and concentrated sell-side pressure. For a sustainable breakout to occur, the network must see a revival in user activity, transaction volume, and fee generation.
Until then, traders should remain cautious. The current price action appears decoupled from fundamentals, making it vulnerable to sharp corrections. While broader market momentum might offer temporary lifts, lasting growth requires more than speculation—it demands adoption.
For investors monitoring BCH, the key takeaway is clear: watch the on-chain data closely. Rising active addresses and increasing fees will be early signs of genuine strength. Until those metrics improve, the path above $250—and especially toward $300—will remain steep.
Core Keywords: Bitcoin Cash, BCH price, on-chain data, network activity, transaction fees, resistance level, active addresses, GIOM data