BCH price breaks long term resistance: Will it continue to break out?

Bitcoin Cash is showing significant momentum in the altcoin group, especially as the market enters a temporary cooling phase of the "big players" like Bitcoin (BTC) and Ethereum (ETH). Although it may not stand out as much as other competitors, BCH has quietly been accumulated by investors in recent times.

Thanks to that, Bitcoin Cash has maintained an upward price trend since April. Specifically, BCH once hit a low of 249 USD in April and has just climbed to 608 USD at the beginning of this week – equivalent to a 142% increase over 4 months.

BCH Price Fluctuation Chart | Source: TradingViewObserving on a broader timeframe, it can be seen that Bitcoin Cash has broken through the long-term downtrend line, which has existed for more than 12 months. This spectacular breakout indicates that the upward momentum is still very strong, reflecting significant demand from the market.

However, this also raises questions about the possibility of natural adjustment. The reason is that the MFI indicator is signaling a decrease in the inflow of funds. Nevertheless, at the time this article was published, BCH had not yet fallen into the overbought zone.

In July alone, Bitcoin Cash has risen by more than 15%, marking the fourth consecutive month of maintaining a positive trend. However, the current price is still significantly lower compared to the historical peak of this altcoin.

Does a high profit rate lead to a wave of profit-taking?

Data from IntoTheBlock reveals some notable information about the profitability situation of Bitcoin Cash. Specifically, 85% of all BCH holders are currently in profit, 3% are at breakeven, and only 12% are at a loss.

According to this statistic, 98% of holders bought BCH more than 12 months ago. Only 2% of investors have participated in the last 12 months, and only a mere 1% have bought in the last 4 weeks.

IntoTheBlock also revealed that whales are controlling about 39% of the total circulating supply of BCH. However, the activities surrounding this coin have noticeably cooled down in the past few days.

The trading volume once peaked at 912.1 million USD, with 335 large transactions recorded on July 25. As of July 30, this figure has decreased by more than half, to about 133 transactions per day.

The decrease in the number of large-scale transactions reflects a more cautious sentiment among investors, especially after BCH surpassed the long-term resistance level. This is a signal that investors are starting to shift towards a defensive strategy. This development also aligns quite well with the overall market sentiment as we enter August - a period that often carries unpredictable volatility.

Bitcoin Cash OI pulls back from local peak

Bitcoin Cash just witnessed the largest spike in OI since April. Specifically, the OI volume of this altcoin surged to 655 million USD on July 28. However, in the two days that followed, this figure dropped by about 140 million USD.

BCH OI Chart | Source: CoinglassThis slight correction comes right after BCH price surpassed a key resistance level. In other words, this could be a sign that some investors have started to reduce their positions due to rising risk concerns.

On another aspect, BCH has had a very impressive price increase since April, and this indicates that a correction is inevitable. However, on the contrary, the selling pressure remains weak, even after the price has risen sharply. This may reflect that long-term investors are still not ready to take profits.

One of the reasons that helps maintain an optimistic mindset may come from the fact that BCH is still far from its previous peak. The low circulating supply, along with BCH having been "tested" over a long period of time, are also factors that contribute to reinforcing the long-term holding trend.

However, the current market-wide correction is also a reminder that there are still many unstable factors and the risk of changes in investor sentiment. Nevertheless, one notable point is that although BCH is still "overshadowed" by larger coins, this does not prevent investors from showing interest.

On the contrary, the recent developments are clear evidence that BCH remains one of the names attracting capital flow in 2025.

Justin