Bitcoin Cash (BCH) has remained stuck in the $272–$624 price range since July 2024, and despite a 22.2% increase since November 15th, the coin has yet to definitively break through the long-term resistance of $624.
A positive sign for long-term investors is the increasing accumulation of buying pressure: the OBV (On-Balance Volume) is forming a higher Dip despite sideways price movement. However, with no confirmed breakout yet, chasing near the peak of the region still carries high risk.
- BCH has been trading sideways in the $272–$624 range since July 2024 and has not yet surpassed $624.
- The long-term accumulation signal is positive when the OBV forms a higher Dip , indicating sustained buying pressure.
- In the short term, the area around $600 could be a Short point, but the bearish scenario is invalidated if it breaks above $605.
BCH is consolidating in the $272–$624 range despite a sharp increase since mid-November.
BCH has risen 22.2% since November 15th but remains within the $272–$624 range, failing to make a clear breakout at $624.
Since July 2024, the price of Bitcoin Cash has mainly fluctuated within a wide range of $272–$624. Meanwhile, from November 15th to the time mentioned, BCH increased by 22.2% while Bitcoin (BTC) decreased by 7.4% during the same period. Despite relatively better performance than BTC, BCH buyers have yet to create a convincing breakout candle through the long-term resistance zone above.
Prolonged sideways price movements often make trend-following trading ineffective, especially when buying near the upper edge of the range. With range patterns, the advantage usually lies with the "buy near support, sell near resistance" strategy until a breakout signal is confirmed.
The OBV forming a higher Dip indicates increasing long-term buying pressure.
Although BCH has not yet surpassed $624, the OBV has been trending upwards with progressively higher Dip since November 2024, reflecting stronger Medium buying pressure over time.
Since November 2024, Bitcoin Cash has repeatedly failed to break through the $624 level. However, the OBV indicator has formed higher Dip , suggesting that during the price fluctuation period, accumulated buying volume continued to improve. This is a "accumulation below resistance" signal, often XEM favorable for the long-term outlook.
In terms of market behavior: when the price hasn't broken through the resistance level but buying pressure gradually dominates, the probability of a breakout increases over time. However, this is not an "instant buy signal" if the price remains near the upper edge of the zone; investors usually wait for a successful breakout and retest to reduce the risk of a false breakout.
You shouldn't buy BCH when the price is near the peak of the region unless there's a confirmed breakout.
Buying BCH near the top of the range (around $600–$624) is generally not optimal unless there is a breakout above $624 and a retest of that support level.
In zone trading, buying at high levels makes the risk/reward ratio less attractive because the upside potential is limited by the $624 resistance. A breakout is possible, for example, if BTC surpasses $94,500 (local resistance) and boosts market sentiment. However, the current signals are not strong enough to expect that scenario in the next few days or weeks.
A pragmatic reference point is: only consider buying on a safer side after the price breaks above $624 and retests this area as support. Before confirmation, investors should avoid buying BCH above $600 to avoid falling into the trap of chasing the long-term resistance level.
A Short -term setup might appear around $600, but there are clear invalid points.
CVD spot data weakened and Open Interest fell nearly 20% after being rejected at the region's peak, creating a suitable context for short-term Short around $600; the bearish scenario is invalidated if it breaks above $605.
Data from Coinalyze shows that the CVD spot has decreased over the last 3 days, reflecting selling activity in the spot market. At the same time, Open Interest has fallen by nearly 20% after price rejection at the high end of the range, a sign of weakening speculative confidence in the short term.
On the 1-hour timeframe, BCH has formed a smaller sideways range between $575 and $597. The psychological level of $600 could become a "good" point to consider for Short by traders on lower timeframes, assuming the price is unlikely to break above this area immediately.
It's important to note the imbalance zones in the 540–580 USD range, which are XEM demand areas that could trigger a price rebound. Therefore, if opening a Short position, traders should prepare for a scenario where the price slows down or retraces within these zones before potentially falling further.
The $605 mark is a crucial invalidation point: if the price exceeds $605, the short-term bearish argument loses its validity, and the risk of a squeeze increases.
Frequently Asked Questions
Should you buy BCH right now?
It's not advisable to buy when BCH is near its long-term peak. A cautious approach would be to wait for the price to break above $624 and retest that support; before that happens, buying above $600 carries high risk.
Why is it important for OBV to increase even when prices are sideways?
The OBV forming a higher Dip indicates that buying pressure is gradually increasing over time, even before the price breaks out. This signals that buyers are becoming stronger and could support a future breakout scenario.
When is the idea of Short -term trading invalid?
If BCH rises above $605, the idea of a short-term decline becomes invalid. At that point, Short positions around $600 carry higher risk due to the possibility of further price increases.
