Will BCH break the "trendline trap" after surpassing 555 dollars?

On July 25, Bitcoin Cash (BCH) made it to the list of the strongest bullish coins on CoinMarketCap, ranking 3rd with an increase of 8%.

This token is currently trading around $557.65 and is attracting special attention as it coincides with a long-term downtrend line, creating a significant resistance level.

BCH is at a key trend line

According to technical analysis, BCH has once again hit the extended descending resistance line, which previously caused two deep declines — one in mid-2024 and one at the beginning of 2025.

Each time there is a rejection at this level, it leads to corrections of over 50%, making the current test more important and noteworthy than ever.

Source: TradingViewIf the recent bullish momentum of BCH continues and the price can break through the resistance level of the descending trend line, this will be a signal that opens up opportunities for a sustainable bullish trend. In this case, BCH is fully capable of breaking out strongly, increasing by 15% to 30% in the near future.

However, the condition for this scenario to occur is that BCH must close the daily candle above 565 dollars. Otherwise, it is very likely that history will repeat previous bearish trends.

As of July 25, the (Relative Strength Index) of Bitcoin Cash on the weekly chart is maintaining at 64 — indicating that the bullish momentum is still strong, but BCH has not yet entered overbought territory. This implies that BCH still has room for growth if buying pressure remains stable.

Whale interest surges, but inflow raises doubts

On-chain indicators are currently sending mixed signals.

According to data from IntoTheBlock, large trading volume has exploded with an increase of 97.77%, reaching 1.69 million BCH on July 25. This sudden surge indicates more active participation from whales and large institutions in the market.

Source: IntoTheBlockOn the other hand, exchanges continue to record the outflow of BCH.

However, data from CoinGlass also shows that over 4.65 million dollars worth of tokens have been transferred to exchanges in the past 24 hours. This cash flow poses a risk that current investors may proceed to sell off, likely influenced by previous performance fluctuations of BCH.

Source: CoinGlassThe ability of BCH to break through the trend line or continue to repeat previous rejections now completely depends on the strength of demand from buyers. If BCH can successfully break out, the bullish momentum will be further accelerated. However, selling pressure is still lurking right above, ready to cause obstacles.

Minh Anh