Bitcoin Cash (BCH) Tests $584 Amid Technical Breakout and Tether SLP Exit

Quick Take

• BCH currently trading at $584.80 (-1.63% in 24h)
• Bitcoin Cash breaks out of two-year falling channel with strong weekly momentum
• Tether’s USDT withdrawal from Bitcoin Cash SLP creates short-term headwinds
• Analysts target $640-$700 rally potential for September 2025

What’s Driving Bitcoin Cash Price Today?

The BCH price faces mixed signals as conflicting developments shape market sentiment. Most recently, Tether’s decision on September 1st to cease issuing and redeeming USDT on Bitcoin Cash’s Simple Ledger Protocol (SLP) has created immediate selling pressure, contributing to today’s 1.63% decline. This regulatory-driven move raises concerns about reduced liquidity and utility for the Bitcoin Cash ecosystem.

However, the broader technical picture tells a different story. Bitcoin Cash technical analysis from September 5th revealed a significant breakout from a two-year falling channel, suggesting the recent pullback may be temporary consolidation rather than trend reversal. The breakout coincides with analyst predictions from September 7th targeting a BCH price rally to $640-$700 range throughout September.

The timing creates an interesting dynamic where fundamental headwinds from the Tether news clash with increasingly bullish technical momentum, explaining the current sideways price action around $584.

BCH Technical Analysis: Bullish Signals Emerge

Despite today’s modest decline, Bitcoin Cash technical analysis reveals multiple bullish indicators aligning for potential upside. The Bitcoin Cash RSI at 52.59 sits in neutral territory, providing room for upward movement without entering overbought conditions that typically precede corrections.

The moving average structure strongly favors bulls, with BCH trading above all major long-term averages. Bitcoin Cash sits 33.8% above its 200-day SMA at $436.86, confirming the long-term uptrend remains intact. More importantly, the recent price action above the 20-day SMA ($572.90) and 50-day SMA ($569.07) suggests momentum is building for another leg higher.

Bitcoin Cash’s MACD indicator provides the strongest bullish signal, with the histogram reading 2.4916 indicating expanding upward momentum. The MACD line trading above its signal line (7.9562 vs 5.4645) confirms the trend direction favors buyers.

The Bollinger Bands paint an interesting picture, with BCH’s %B position at 0.6236 suggesting the coin is trending toward the upper band at $621.04. This positioning often precedes breakout moves when combined with expanding volume.

Bitcoin Cash Price Levels: Key Support and Resistance

Based on Binance spot market data, Bitcoin Cash support levels provide clear risk management zones for traders. The immediate BCH support sits at $524.00, representing a 10.4% buffer below current levels. This level aligns closely with the lower Bollinger Band at $524.75, creating a strong confluence zone.

Should selling accelerate, Bitcoin Cash strong support awaits at $490.20, marking the final defense before a more significant correction. This level represents an 18.1% decline from current prices and would likely attract institutional buying interest.

On the upside, BCH resistance levels offer clear profit targets. The immediate resistance at $629.80 represents a 7.7% gain from current levels and aligns with recent analyst targets. Breaking above this zone opens the path to Bitcoin Cash strong resistance at $634.30, just shy of the ambitious $640-$700 target range.

The 52-week high at $618.80 serves as an important psychological level, with a decisive break above likely triggering algorithmic buying and momentum traders.

Should You Buy BCH Now? Risk-Reward Analysis

The current BCH price setup offers different opportunities depending on trader timeframes and risk tolerance. Conservative investors might wait for a pullback to the $524 support zone, offering a better risk-reward ratio with clear stop-loss levels.

Momentum traders could consider current levels, using the daily ATR of $27.22 to set appropriate position sizes. A break above $600 with volume would signal the resumption of the bullish trend identified in the two-year channel breakout.

Swing traders should monitor the BCH/USDT pair closely around the $629.80 resistance level. A clean break with volume above 40 million could trigger the predicted rally toward $640-$700. However, rejection at this level might prompt a retest of the $570-$580 zone.

Risk management remains crucial given the recent Tether SLP news. While technical indicators suggest upside potential, fundamental headwinds could override technical signals if broader cryptocurrency sentiment deteriorates.

Conclusion

Bitcoin Cash price action over the next 24-48 hours will likely determine whether the recent technical breakout maintains momentum or succumbs to Tether-related selling pressure. The BCH RSI in neutral territory provides flexibility for movement in either direction, making volume and resistance level breaks critical confirmation signals. Traders should watch for a decisive move above $600 to confirm bullish continuation or a break below $570 to signal deeper correction risk.

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