Bitcoin News Today: Bitcoin Cash surges 8% to $555.20 retesting critical trendline with history of sharp sell-offs

Bitcoin Cash (BCH) surged 8% to $555.20 on July 25, retesting a critical descending trendline that has historically triggered sharp sell-offs. The price level aligns with a long-standing resistance zone, having previously caused over 50% drawdowns in mid-2024 and early 2025 [1]. This resurgence has sparked renewed debate about whether BCH can escape its pattern of repeated trendline rejections or face another steep correction.

Technical indicators suggest cautious optimism. The weekly Relative Strength Index (RSI) for BCH stood at 64 as of July 25, reflecting strong momentum without entering overbought territory [1]. This signals potential for further gains if buyers sustain pressure above the trendline. However, historical precedent remains a wildcard: prior tests of this trendline led to significant price declines, with a daily close above $565 now critical to validate a breakout [1]. Failure to breach this threshold risks a repeat of past sell-offs, reinforcing the psychological and technical significance of the $555.20 level.

On-chain activity presents a mixed picture. Whale and institutional interest spiked dramatically, with large transactions surging 97.77% to 1.69 million BCH on July 25 [1]. This increase in large transfers could indicate accumulation or strategic positioning by major holders. Conversely, exchange inflows of $4.65 million in the preceding 24 hours raised concerns about potential dumping, as investors historically offloaded tokens during similar trendline tests [1]. The juxtaposition of rising whale activity and exchange inflows underscores the uncertainty surrounding BCH’s next move.

Market participants are closely monitoring whether buyer momentum can overcome bearish history. A successful breakout could open the door to a 15-30% price increase in the near term, according to AMBCrypto’s analysis, but this outcome hinges on sustained buying pressure and a clean closure above $565 [1]. Failure to breach the trendline risks reinforcing the bearish narrative, with prior rejections serving as a cautionary precedent.

The broader context of BCH’s performance highlights the interplay between technical resilience and market psychology. While on-chain metrics suggest active participation from large holders, the lingering shadow of prior rejections complicates bullish narratives. Investors must weigh these factors against broader cryptocurrency market dynamics, though no direct correlations to regional or global economic indicators are evident in the analysis [1].

Source:

[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/)