Bitcoin Cash (BCH) has regained its position within an ascending price channel after a brief decline. Traders are closely watching attempts to break through the resistance around $630–640. This article examines the current state of BCH and the factors influencing its further movement.
Price Channel Context
Bitcoin Cash has been trading within an ascending parallel channel for much of 2025. The lower boundary provides strong support around $500–520, while the upper boundary caps rallies near $680–700.
In late August, BCH dipped below the channel and tested deeper lows but quickly recovered, reclaiming its position. This recovery also established a new support area near $525, which has since been a critical level for buyers.
Currently, the price is consolidating around $590–600, near the mid-point of the channel. This positioning suggests that the next move will likely decide whether BCH pushes higher towards resistance or faces another rejection.
RSI Confluence with Price
The Relative Strength Index (RSI) has been a reliable indicator confirming BCH's channel dynamics: * **RSI Support (~40–42)**: Each time RSI dipped into this range, BCH was also testing the lower boundary of the channel. Buyers stepped in at both levels, creating a strong confluence for entry. * **RSI Resistance (~70)**: Whenever RSI reached the 70 zone, BCH simultaneously pressed against the channel top, signaling overbought conditions. * **Current RSI (~55–56)**: RSI is now slightly above the midpoint, reflecting BCH's current mid-channel position. This neutral reading leans slightly bullish, allowing room for momentum to build toward the $630–640 test.
This alignment between RSI and price channels strengthens the technical reliability of the setup, helping traders spot potential entry and exit zones.
Macro Environment Supports Upside
Beyond technical aspects, broader market conditions play an important role. Weak U.S. jobs data has raised expectations that the Federal Reserve will begin cutting rates sooner than previously projected.
Policymakers are now seen as highly likely to deliver rate cuts at the September meeting, potentially stimulating liquidity to flow into risk assets like equities and cryptocurrencies.
Additionally, growing anticipation of crypto ETF approvals in the coming months is lifting investor sentiment toward large-cap coins like Bitcoin Cash.
The current technical picture for Bitcoin Cash remains constructive as long as the $525 support holds. With RSI confirming momentum strength and macro conditions increasingly favorable, the path of least resistance points higher.
