Bitcoin Cash breaks through a key price level
Bitcoin Cash (BCH) has risen over 7% in the past week, with a price of about 491 USD before publishing. After briefly breaking through the 500 USD mark, it has slightly retreated, which may indicate that a medium to long-term trend change is occurring.
From a technical chart perspective, the descending triangle pattern on the BCH weekly chart has been suppressing the price movement since mid-2021. This strong breakout is expected to be the first effective challenge to the resistance trend line in the past three years. If it successfully stabilizes, it may advance towards the next price range of $600 - $700, and even challenge the historical high of $1,600.
Key Technical Levels and Pullback Risks
Currently, the preliminary support range for BCH lies in the 400 – 450 USD area, which was a major accumulation zone for bullish funds. If the price retraces but holds steady in this range, it will strengthen market confidence after the breakout. The technical pressure above comes from the 600 - 700 USD range and 1,600 USD, which are the highs that appeared during the 2021 bull market. If market sentiment continues and is accompanied by increased trading volume, challenging these price levels is not technically a wishful thinking.
Policy and market sentiment resonance
Recent political and macro events have also brought unexpected benefits to BCH. For example, Trump publicly stated at the Bitcoin 2024 summit that Bitcoin has the potential to reach 100 trillion dollars, and Senator Lummis proposed a bill to establish Bitcoin as a national reserve currency. These developments not only enhance Bitcoin’s strategic position but also boost market confidence in similar coins like BCH. The “contagion effect” is common in the crypto market; once BTC strengthens the overall market sentiment, funds often flow into the “undervalued” Bitcoin forks, with BCH frequently being one of the targets for speculative funds.
Tether will terminate BCH SLP support.
Although short-term technicals and sentiment are favorable for BCH, market risks cannot be ignored. Tether recently announced that it will terminate support for the SLP protocol for BCH starting September 1, 2025, which may lead some users to transfer assets early or experience liquidity shocks. Since USDT is the main circulating instrument in the stablecoin market, once support is halted, it could cause funds on the BCH blockchain to be withdrawn rapidly, triggering sharp price fluctuations, especially in an on-chain environment where liquidity is already relatively weak.
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Summary
Currently, BCH is at the intersection of technological breakthroughs and policy support. Once the market transaction volume aligns and the impact of risk events (such as USDT withdrawals) is controlled, it is possible to launch a mid-term offensive with considerable upward potential. For investors with a higher risk tolerance, BCH may be a rising star worth paying attention to in this round of market trend.
