Market Overview for Bitcoin Cash/Tether (BCHUSDT): Strong Bullish Momentum Amid Volatility

• Bitcoin Cash/Tether (BCHUSDT) surged 11% in 24 hours, closing near a key Fibonacci resistance level.
• Price formed bullish engulfing patterns during late ET hours, confirming renewed buying pressure.
• Volatility expanded sharply as Bollinger Bands widened, indicating potential breakout conditions.
• RSI moved into overbought territory, suggesting possible near-term consolidation or pullback.
• Turnover spiked during the early morning UTC rally, aligning with price highs and confirming bullish momentum.

The BCHUSDT pair opened at $595.00 on 2025-09-17 at 12:00 ET, and by 12:00 ET the following day, it had surged to $646.40 after hitting a high of $646.80 and a low of $591.30. Total volume over the 24-hour period was 104,435.03 BCH, with a turnover of $63,747,809.63. This reflects strong buying interest, especially during the 2–6 AM UTC window, where price surged past key resistance levels with heavy volume.

Support levels were identified near $591–593, which held during early ET hours before the price broke higher. A bearish engulfing pattern was seen around 16:30 ET, but it was quickly negated by a strong bullish reversal at 17:45 ET. A key bullish engulfing candle emerged at 22:30 ET, marking the start of a sharp rise that continued through the night. A doji near $635–636 during the 10:45–11:00 AM UTC period suggests temporary indecision following the breakout.

The 15-minute moving average crossover (20/50) turned bullish during the late ET hours, aligning with the price surge. The 50-period line crossed above the 20-period line near $593, confirming a shift in momentum. The daily 50-period MA sits at $578, far below the current price, suggesting a strong short-term uptrend relative to the longer-term context. This divergence may point to a continuation of bullish momentum, especially if the 20-period MA holds above the 50-period MA.

MACD showed strong positive divergence during the price’s rapid rise, with the histogram peaking during the 2–4 AM UTC rally. The RSI climbed above 70, indicating overbought conditions and raising the likelihood of a near-term pullback. However, the rapid acceleration in volume and price during the breakout period suggests strong institutional or algorithmic participation.

Bollinger Bands expanded significantly during the price’s ascent, with the upper band reaching as high as $646.80. Price closed near the upper band at $646.40, signaling strong volatility and the potential for continued upward movement or a corrective pullback. The 23.6% Fibonacci level sat near $615.20, while the 38.2% and 61.8% levels were at $612.30 and $608.30, respectively. The price held well above the 61.8% level during the morning, indicating strong short-term bullish bias.

The backtesting strategy involves identifying bullish engulfing patterns and confirming them with a 20/50 moving average crossover and increasing volume. Traders would enter long positions on confirmation, with stop-loss below the low of the engulfing candle and a target at the next Fibonacci level. Given the recent action, this approach could have yielded a successful trade during the 22:30–23:00 ET rally.