Bitcoin News Today: Bitcoin Cash Surges 8% to $555.2 as Critical Trendline Tested, Analysts Eye $565 Breakout

Bitcoin Cash (BCH) surged 8% on July 25, reaching $555.2 and retesting a critical descending trendline that has historically signaled sharp sell-offs. The price movement vaulted BCH to the third spot on CoinMarketCap’s top gainers list, reigniting debates about whether the asset can break free from a pattern of rejection at this key resistance level [1]. Established in mid-2024 and reinforced by a major pullback in early 2025, the trendline previously triggered over 50% declines after failed attempts to cross above it. Analysts are now watching for signs that buyers can sustain momentum and avoid repeating history.

Technical indicators suggest a mixed but cautiously optimistic outlook. The Relative Strength Index (RSI) for BCH stood at 64 on the weekly chart as of July 25, indicating strong upward momentum but not yet hitting overbought territory. This leaves room for further gains if buyers continue to defend the $555.2 level [1]. However, a decisive break above $565—marked by a daily candle closing above this threshold—is seen as a necessary condition for a meaningful breakout. Failure to do so risks a reversion to bearish trends observed in prior attempts, where rejections led to steep declines.

On-chain data reveals a fragmented picture. Whale activity spiked dramatically, with large transaction volume surging 97.77% to 1.69 million BCH on July 25, according to IntoTheBlock. This jump in institutional and whale movements hints at strategic positioning ahead of a potential price resolution [2]. Yet exchange inflows complicate the narrative: CoinGlass reported $4.65 million in BCH tokens deposited onto exchanges in the past 24 hours. Such inflows often precede selling pressure, as holders may prepare to offload assets if the trendline fails to hold [3]. The contrast between growing institutional interest and exchange activity underscores the market’s uncertainty ahead of a critical technical test.

The market remains divided on whether BCH can escape its historical trap. A successful breakout above $565 could trigger a 15-30% rally in the near term, fueled by renewed bullish sentiment and reduced selling pressure from large holders. However, bearish risks remain acute. If BCH retreats below the trendline, it risks reigniting the sharp declines seen in 2024 and 2025, potentially dragging the asset into a consolidation phase or further downward correction. The outcome hinges on whether buyer momentum can overpower the entrenched bearish psychology tied to this level [1].

The broader implications for the cryptocurrency market depend on BCH’s performance. As one of the more established altcoins, its ability to break free from technical constraints could signal a shift in risk appetite or institutional participation. Conversely, a failed breakout might reinforce caution in the sector, particularly as other assets face similar resistance levels. Investors will likely monitor not just price action but also on-chain metrics like exchange flows and whale activity for clues about the balance of power between buyers and sellers [1].

Sources:

[1] [Bitcoin Cash hits $555 – Can BCH finally escape THIS trendline trap?](https://ambcrypto.com/bitcoin-cash-hits-555-can-bch-finally-escape-this-trendline-trap/)

[2] [IntoTheBlock](https://intothblock.com)

[3] [CoinGlass](https://coinglass.com)