Bitcoin Cash’s price drops but increasing user engagement and bullish divergence indicate possible recovery
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Key Takeaways
The number of active Bitcoin Cash network users has increased significantly since last month.
BCH Stock to Flow ratio has spiked, indicating high scarcity and supporting the potential rebound.
Bitcoin Cash price could see a 50% after the A/D line formed a bullish divergence against the price.
Like many cryptos in the market, 2025 has proven to be torrid for Bitcoin Cash (BCH). Within the last month, the price of Bitcoin Cash has dropped by 30%, moving from a peak of $510 to $333.
Despite that, recent data shines light on a surge in network activity, suggesting that this could fuel a rally. This upswing also coincides with a bullish divergence that could see BCH erase almost every part of the 30% fall.
According to the on-chain analytic platform Santiment, Bitcoin Cash has seen an increase in active addresses over the past 30 days. On Jan. 6, active addresses on the network were 2.78 million.
Active addresses are a key metric for measuring user engagement on a blockchain. It represents the number of unique addresses participating in transactions within a given period.
Active addresses indicate heightened investor interest and stronger network utility when it rises. On the other hand, a decline may indicate reduced activity or waning market interest.
As of this writing, active addresses on the Bitcoin Cash network have risen to 3.08 million. This increase indicates a rise in the number of successful transactions on the blockchain. If sustained, this could be bullish for BCH price.
Furthermore, CCN observes a spike in the Stock to Flow (S2F) ratio. The S2F ratio compares the total supply in circulation to the rate at which new coins are mined or created.
An increase in the S2F ratio indicates that the supply of new coins entering circulation is low, which can suggest scarcity and potentially drive up the asset’s value. A decrease, on the other hand, signifies otherwise.
Therefore, the spike in the coin’s S2F ratio is a bullish sign, as the Bitcoin Cash price could experience a renewed uptrend due to the limited new supply.
Bitcoin Cash Stock to Flow Ratio | Credit: Santiment
This is due to the position of the Accumulation/Distribution (A/D) line. As the name implies, the A/D line shows the demand or supply level around a cryptocurrency.
When the indicator declines, it indicates a high level of selling pressure. However, in this case, the reading has been increasing. The decline in BCH price alongside the rising A/D line indicates a bullish divergence.
This suggests that despite the falling value, buying pressure is increasing, which could precede a potential uptrend for the cryptocurrency.
Should this trend remain the same, Bitcoin Cash price might increase by 50%, which could take it to approximately $500.
However, if the A/D reading breaks below the lower highs it has formed, this prediction might be invalidated.
In that scenario, the BCH price might drop to $271.34.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
