Bitcoin: Watching the cryptocurrency market can feel like riding a rollercoaster, with every twist and turn stirring excitement and caution. Bitcoin Cash (BCHUSDT) recently captured traders’ attention with a strong bullish breakout, bringing a mix of optimism and careful anticipation to the market. The digital asset closed near session highs, signaling renewed momentum and highlighting the underlying strength of its price action.
Momentum Builds as Resistance Levels Are Tested
On August 20, 2025, Bitcoin Cash opened at $556.4 and climbed to a high of $565.0 before closing at $553.2 the following day. The trading session was marked by increased volume, rising momentum, and an RSI entering overbought territory. These signals suggest that bullish sentiment is strong, even as volatility remained stable within Bollinger Bands.
A particularly notable pattern emerged between $553.0–$556.0, where a bullish engulfing formation indicated a short-term upward bias. Resistance levels at $559.7 and $561.2 were tested multiple times, with the $561.2 level acting as a pivotal barrier. Amid minor indecision reflected by a doji at $559.6, buyers quickly regained control, pushing the price higher.
Moving Averages Signal Uptrend Continuation
Technical indicators further strengthened the bullish narrative. On the 15-minute chart, the 20SMA and 50SMA formed an ascending slope, confirming an uptrend during the final hours of trading. The price remains above both moving averages, while daily charts show the 50DMA and 200DMA in bullish alignment. This alignment suggests that Bitcoin Cash may continue its upward journey in the broader trend.
Positive Momentum Confirmed by MACD and RSI
The 15-minute MACD crossed above the signal line, with rising histogram bars confirming positive momentum. Although the RSI reached overbought levels between 75 85, there was no significant divergence, hinting that the uptrend may still have room to grow. Traders should remain alert, however, as overbought conditions can sometimes precede short-term corrections.
Volume and Turnover Highlight Strong Conviction
Volume surged notably during the breakout phase, particularly between 02:00–06:00 ET, reinforcing the strength of the upward movement. Notional turnover mirrored the price increase, confirming genuine market participation rather than speculative spikes. This coordination between volume and price adds credibility to the bullish move and strengthens investor confidence.
Fibonacci Retracements Provide Key Support Levels
The 61.8% Fibonacci retracement of the $553.4–$565.0 swing acted as a dynamic support/resistance zone at $557.0–$560.0. Bitcoin Cash repeatedly respected this range, suggesting a healthy market structure. With the close at $556.5 on August 21, traders may look toward the 78.6% retracement level at $561.5 as the next potential target, assuming bullish momentum continues.
Looking Ahead Caution Meets Opportunity
Bitcoin Cash appears poised to test higher resistance zones between $561.5 and $565.0. Yet, any pullback toward $556.5 or $553.0 could challenge short-term bullish conviction. Investors should remain mindful of potential volatility and overbought conditions while appreciating the strength and resilience demonstrated in recent price movements.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency trading involves risk, and investors should conduct their own research and consider consulting a professional before making any investment decisions.
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