Bitcoin Cash Surges 23% Monthly as Institutional Interest Builds Momentum
Market Structure Shifts Higher
- BCH climbs 23.2% over three months, outperforming major Layer 1 competitors
- Institutional exposure strengthens with Bitwise’s $1.25B index fund approval
- Technical indicators flash balanced readings as price consolidates near $593
Bitcoin Cash has kick-started 2025 with a convincing 23.2% surge over the past quarter, currently trading at $592.59 after touching monthly highs of $607.35. The sustained rally gained additional wind to the sails when Bitwise’s $1.25B Crypto Index Fund secured SEC approval for NYSE trading, positioning BCH for increased institutional flows. The main question for traders is: can BCH maintain its leadership among Layer 1s while navigating the technical resistance stacking up ahead?
| Metric | Value |
|---|---|
| Asset | BITCOIN CASH (BCH) |
| Current Price | $592.59 |
| Weekly Performance | 3.11% |
| Monthly Performance | 13.26% |
| RSI (Relative Strength Index) | 58.5 |
| ADX (Average Directional Index) | 19.0 |
| MACD (MACD Level) | 7.99 |
| CCI (Commodity Channel Index, 20-period) | 69.38 |
RSI Holds Neutral Territory at 58.5 – Room for Continuation
Reading the oscillator at 58.54 on the daily timeframe reveals perfectly balanced momentum – neither stretched nor exhausted. This goldilocks zone traditionally allows for movement in either direction without immediate reversal pressure. What’s particularly interesting is how RSI maintained this equilibrium despite BCH’s 40% surge that positioned it as the top-performing major Layer 1 blockchain in early 2025.
Similar RSI configurations in previous rallies showed BCH could add another 15-20% before hitting overbought conditions above 70. So for swing traders, this balanced reading suggests the current consolidation phase near $593 represents accumulation rather than distribution, especially with institutional interest building through the Bitwise fund inclusion.
ADX at 19 Signals Consolidation Before Next Directional Move
Trend strength remains subdued with ADX reading just 18.99, indicating the market has shifted into range-bound conditions after the recent surge. Basically, this low ADX environment means the explosive 40% rally has paused for breath, with neither bulls nor bears commanding decisive control. The +DI and -DI convergence near 16.8 confirms this equilibrium state.
To clarify, when ADX drops below 20 after a strong move, it typically signals a consolidation period lasting 1-2 weeks before the next trending phase emerges. Therefore, day traders should adjust strategies for range-bound action between established support and resistance levels, while position traders can use this compression phase to accumulate before ADX climbs back above 25.
Price Defends Above Critical 50-Day EMA at $548
Moving average structure reveals bullish architecture with BCH trading comfortably above all major EMAs. Price sits well clear of the 10-day ($566.23), 20-day ($561.32), and crucially, the 50-day EMA at $548.17 which has transformed from resistance to support during this quarter’s rally. This ascending staircase of averages provides multiple cushions for any potential pullback.
What stands out here is the 100-day EMA at $541.02 acting as the next major support floor, roughly $50 below current levels. Bulls now guarding these higher lows they’ve established, with the psychological $550 zone reinforced by both the 50-day EMA and horizontal support from December’s breakout level. As long as BCH holds above this confluence, the technical structure favors continuation toward monthly resistance.
Resistance Clusters Between $607-$640 as Bulls Eye Breakout
Immediate resistance emerges at the recent monthly high of $607.35, where sellers defended aggressively three times this week. Beyond that, the technical landscape shows major resistance clustering around $639.77 – the Fibonacci extension target that aligns with Q3 2024’s significant pivot level. This zone between $607-$640 represents the critical battlefield where BCH’s next major move will likely be determined.
Support architecture looks increasingly robust thanks to the Bitwise fund approval adding institutional backing to technical levels. The $555-$575 range where BCH consolidated for weeks now acts as a demand zone, with whale accumulation reported at these levels. Below that, the psychological $550 mark coincides with the 50-day EMA, creating a double support layer.
Market structure clearly favors buyers as long as the $548 level holds on any retracement. The combination of rising EMAs, established higher lows, and increasing merchant adoption creates a constructive backdrop for the next leg higher, especially with BCH leading all major Layer 1s in 2025 performance.
Bulls Target $640 While Bears Watch $548 Support Line
Should BCH secure a daily close above $607 with expanding volume, the measured move targets $640 where Fibonacci resistance awaits. The Bitwise index inclusion provides the fundamental catalyst for this breakout scenario, potentially attracting systematic buying from institutional allocators tracking the index.
Bears need to see rejection at current levels followed by a breakdown below $548 to shift momentum. Such a move would trap recent buyers who entered on the index fund news, likely triggering stops toward $520 where the 200-day EMA provides distant support. Volume would need to spike on any breakdown to confirm genuine distribution rather than a liquidity sweep.
Given the balanced technical setup and strengthening fundamental backdrop with increased institutional access, BCH appears poised for continued consolidation in the $575-$607 range before attempting another assault on $640 resistance. The combination of neutral RSI, compressed ADX, and defended moving average support suggests accumulation continues ahead of the next trending phase.
