Bitcoin Cash has been showing renewed strength as traders watch whether its recent recovery can sustain momentum.
Bitcoin Cash (BCH) is back inside its ascending price channel after briefly slipping below support, with traders watching closely whether the next breakout attempt can clear heavy resistance around $630–640. The recent rebound has revived bullish sentiment, and if momentum holds, BCH could be on track to retest the $700 zone in the coming weeks.
Price Channel Context
BCH has been trading within an ascending parallel channel for much of 2025. The structure is clearly defined, with the lower boundary providing strong support around $500–520 and the upper boundary capping rallies near $680–700.
In late August, BCH dipped below the channel and briefly tested deeper lows, but it quickly recovered and reclaimed its position. This recovery also established a new support area near $525, which has since acted as a critical level for buyers.
For now, price is consolidating around $590–600, near the mid-point of the channel. This positioning suggests the next move will likely decide whether BCH pushes higher toward resistance or faces another rejection.
RSI Confluence with Price
The Relative Strength Index (RSI) has been highly reliable in confirming BCH’s channel dynamics:
- RSI Support (~40–42): Each time RSI dipped to this range (e.g., June and August 2025), BCH was also testing the lower boundary of the channel. Buyers stepped in at both levels, creating strong confluence for entry.
- RSI Resistance (~70): Whenever RSI reached the 70 zone (May and July 2025), BCH simultaneously pressed against the channel top. These instances signaled overbought conditions, often followed by retracements.
- Current RSI (~55–56): RSI is now sitting just above the midpoint, similar to BCH’s current mid-channel position. This neutral reading leans slightly bullish, leaving space for momentum to build toward the $630–640 test.
This alignment between RSI and price channels reinforces the technical reliability of the setup, helping traders spot potential entry and exit zones.
Macro Environment Supports Upside
Beyond technicals, broader market conditions are playing an important role. Weak U.S. jobs data — with nonfarm payrolls and jobless claims disappointing — has increased expectations that the Federal Reserve will begin cutting rates sooner than previously projected.
Policymakers are now seen as highly likely to deliver rate cuts at the September meeting, with some analysts even speculating about a larger-than-expected 50 basis point move if inflation softens further. Lower borrowing costs generally encourage liquidity to flow into risk assets such as equities and cryptocurrencies.
At the same time, investor sentiment is being lifted by growing anticipation of more crypto ETF approvals in the coming months. This institutional angle has renewed interest in large-cap coins like Bitcoin Cash, which could benefit if inflows spread beyond Bitcoin itself.
Price Scenarios
- Bullish Case: If BCH holds above $525 and successfully breaks through $630–640 resistance, momentum could accelerate quickly, targeting the channel’s upper boundary near $700. Beyond this, a clean breakout could extend the rally into uncharted levels, though profit-taking is likely along the way.
- Bearish Case: Failure to clear $630–640 again could trigger another rejection, pulling BCH back toward mid-channel levels around $560. A decisive break below $500–520 would invalidate the channel and expose price to deeper losses.
- Neutral Case: BCH may continue consolidating around $590–600 in the short term, with RSI hovering near the midpoint. This scenario would reflect market indecision until stronger macro or technical catalysts emerge.
Outlook
The technical picture for Bitcoin Cash remains constructive as long as the $525 support holds. With RSI confirming momentum strength and macro conditions increasingly favorable, the path of least resistance points higher. Traders will now be watching closely to see if BCH can finally break past the $630–640 barrier and open the door to a push toward $700.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-cash-chart-signals-explosive-rally-ahead/