- Bitcoin Cash (BCH) surged 50% after breaking a 90-day resistance trend line, showing resilience at the $300 support level.
- However, its future remains uncertain as it faces strong resistance between $420 and $500, which will determine whether this is a true breakout or just a temporary rally.
Bitcoin Cash (BCH) has stunned the crypto market with a 50% price surge, breaking through key resistance levels and reigniting investor interest. But is this rise a sign of sustained momentum, or just a short-lived relief rally? Let’s explore the factors behind this impressive price movement.
Bitcoin Cash Breaks Out of Downtrend
Since July 2023, BCH has been moving within an ascending parallel channel, reaching a cycle high of $719.5 in April 2024. However, its bullish run lost steam, and after a lower high in December 2024, the price began a downward trend. By February 2025, BCH had broken below the channel, triggering concerns that the uptrend had officially ended.
Despite this, BCH showed remarkable resilience by bouncing back from the $300 support level multiple times. This renewed buying pressure pushed BCH past its 90-day resistance trend line, leading to the recent 50% price increase.
Technical Indicators: Mixed Signals for BCH’s Future
While the breakout is promising, technical indicators suggest uncertainty. The Relative Strength Index (RSI) hovers at 50, indicating a neutral trend, while the Moving Average Convergence/Divergence (MACD) sits at zero, failing to confirm a clear bullish or bearish bias.
The BCH price has now entered a critical resistance zone between $420 and $500. If the price successfully breaks above this range, it could signal the start of a new uptrend and potentially lead to fresh cycle highs. However, failure to do so could result in another downward correction.
Short-Term or Long-Term Growth?
The short-term BCH wave count suggests that the correction phase may be over. If this holds true, BCH could be gearing up for another strong upward movement. Historical Fibonacci retracement levels indicate that the recent pullback fits the typical pattern of corrective waves before a new bullish phase.
However, there is also a possibility that this rally is merely a temporary bounce before another downturn. If BCH faces rejection at the current resistance level and forms a lower high, it could confirm a bearish continuation.
What’s Next for Bitcoin Cash?
With Bitcoin (BTC) recently reaching an all-time high, the broader crypto market remains bullish. BCH’s price action over the next few days will be crucial in determining whether it follows suit or struggles to sustain momentum.
Investors should keep a close eye on the $420-$500 resistance range. A breakout could confirm a fresh bullish cycle, while a rejection might signal a return to lower support levels.
Bitcoin Cash’s 50% surge has caught the attention of traders, but its long-term trajectory remains uncertain. Whether this rally continues or fades depends on BCH’s ability to break key resistance levels and maintain buying pressure. Crypto enthusiasts should stay cautious and watch for further confirmation before making investment decisions.
