- BTC Cash is out of its downward trend due to the eight years of straight continuing line showing a long term structural change and good technical and momo signals.
- Trading volume increased 53 percent above its monthly average, which confirms the breakout since open interest and on-chain transactions have continued to increase.
- Market analysts view sustained liquidity and institutional participation as signs that Bitcoin Cash’s first real bull rally is underway.
Bitcoin Cash ($BCH) is showing renewed strength after completing a long-awaited retest of its breakout zone, suggesting that a new bullish phase may be underway. The asset’s recent move has drawn close attention from traders as both technical and on-chain indicators support the rally’s credibility.
Technical Breakout Confirms End of Multi-Year Downtrend
According to market analyst CW8900, Bitcoin Cash has completed a successful retest following a breakout from a long-term descending trendline that has capped price growth since 2017. The weekly chart structure shows a clean technical reversal, marking the end of an eight-year compression period.
The breakout above the $450–$500 range, previously a strong resistance zone, has now turned into a support base. The sustained trading above this level confirms a structural shift, suggesting the end of BCH’s prolonged accumulation phase. Such clean retests often mark the beginning of new cycles driven by higher conviction among long-term holders.
Momentum indicators further validate this shift. Heikin Ashi candles show strong green momentum following the retest, a sign of renewed buyer control. This formation mirrors early bull market patterns where capital begins rotating from defensive positions into assets with fresh structural setups.
Volume, RSI, and Open Interest Indicate Genuine Market Strength
Market observers Crypto_Melania have noted that Bitcoin Cash has seen a price increase of nearly 10% in the last 24 hours, trading above $558, along with a 53% increase in daily trading volume to $686 million. This trading volume is well above the previous 30-day average which suggests that the price increase was backed by liquidity, rather than more speculative short-term activity.
The Relative Strength Index (RSI) is at 65.5, indicating strong momentum without being overbought. This level typically indicates an asset’s momentum can continue northward before becoming exhausted. In addition, open interest in perpetual futures is up 12%, demonstrating increased participation from institutional and professional traders as well.
Bitcoin Cash’s market capitalization is at approximately $11.1 billion, and daily on-chain transactions are on the rise by 18%. The data suggests an increase in the activity of the network, indicating an increase in actual participation in the market, not speculative spikes.
Traders Monitor Liquidity Retention for Sustained Rally
The sustainability of Bitcoin Cash’s move will depend on how long the increased volume and liquidity persist. Historically, similar rallies have continued only when accompanied by consistent inflows and stable funding rates across derivatives markets.
Analysts note that volume-led rallies tend to attract follow-through from long-term investors rather than short-lived speculative interest. If volume remains elevated, Bitcoin Cash could test the $600 resistance level in the near term, though risk exposure will rise as RSI approaches the 70 threshold.
Market participants view this event as a case study in how structural breakouts, rising volume, and institutional positioning combine to reshape capital flows within the digital asset sector. The confirmation of Bitcoin Cash’s breakout marks the potential start of its first true bull rally in nearly a decade — one defined by data-backed conviction rather than sentiment-driven momentum.
