Bitcoin Cash Holds Above $520 as Breakout Volume Points to Renewed Bullish Momentum
BCH advances with heavy trading activity, signaling potential continuation toward higher resistance zones.
Market Overview
Bitcoin Cash (BCH) extended its upward momentum on Tuesday, rising 0.71% to $524.31 and outperforming the broader crypto market by nearly 5%, according to CoinDesk Research’s technical data model.
The rally was accompanied by a sharp 25.76% increase in trading volume above the seven-day average, suggesting institutional participation behind the move. BCH traded within a $504.38–$525.66 range, successfully converting the $520 level—previously a stubborn resistance—into short-term support after multiple failed attempts in prior sessions.
Trading activity spiked significantly around 01:00 UTC, when 46,349 BCH changed hands—nearly 180% above the 24-hour moving average—coinciding with a test near $531 resistance. The surge confirmed solid buying pressure and reinforced the breakout’s technical validity.
Consolidation Signals Accumulation
With no major fundamental news influencing the market, technical structure and volume trends guided Tuesday’s price action. BCH formed a narrow consolidation band between $523.41 and $526.12, with fading volatility and lower intraday volume—a setup often associated with accumulation before an expansion move.
Market technicians note that the ascending trendline from the $504 low continues to produce higher lows, indicating persistent underlying demand. The modest price advance, coupled with expanding volume, suggests institutional positioning may be underway as traders anticipate a potential retest of upper resistance levels.
Key Technical Signals
- Support / Resistance: Initial support is seen at $502.67, with resistance at $530–$531, where recent rejection occurred.
- Volume Dynamics: Tuesday’s 25.76% volume surge and peak turnover near resistance confirm active participation from larger players.
- Chart Pattern: A developing bullish continuation pattern is visible, reinforced by ascending price structure and persistent accumulation near key levels.
- Targets: Short-term upside targets are $530, extending to $540–$550 if momentum sustains. Downside risk remains limited while BCH holds above $520.
Broader Market Context
The CoinDesk Index 5 (CD5) fell slightly by 0.10%, slipping from $1,841.23 to $1,827.70 during a volatile session. The index recorded an intraday high of $1,852.86 before a sharp $34.85 selloff, finding support near $1,816–$1,817. The movement reflected broader choppiness across the crypto market despite localized strength in select altcoins such as Bitcoin Cash.
