Bitcoin Cash Surges 21% – Can It Hold Above $400?

Bitcoin Cash (BCH) has jumped 21% in a single day, sparking excitement among traders. A key question now is whether the rally can sustain itself or if resistance at $400 will trigger a pullback.

BCH Flashes Bullish Signals, but Resistance Looms

With BCH trading at $403 at press time, a daily close above $351 would confirm a shift in market structure, reinforcing bullish momentum.

Interestingly, Bitcoin Cash shows a +0.8 correlation with Dogecoin (DOGE) and Chainlink (LINK), while its correlation with Bitcoin (BTC) stands at +0.71, according to IntoTheBlock. This suggests that while BCH moves in tandem with BTC to some extent, it also has independent factors influencing its price.

Strong Demand Driving Price Action

• Social volume remains steady – Activity on social platforms has picked up since mid-February, indicating renewed interest in BCH.
• Daily active addresses surged last week – On-chain activity spiked alongside the price increase, a sign of growing participation.

Key Levels to Watch

Resistance at $408-$422 – This zone presents a challenge for BCH bulls. If the price struggles to break past this range, a rejection could send BCH lower.

Support at $329-$342 – Buyers accumulated a large volume of BCH in this region, making it a strong potential support in case of a pullback.

Technical Outlook: Bearish Order Block at $425

• BCH must break $400 to sustain the rally. The level was a critical support in December and aligns with the 61.8% Fibonacci retracement from its previous drop ($500 → $275).
• A rejection near $414-$425 could trigger short positions. Traders looking to short BCH may find this zone a good risk-reward area.
• A breakout above $452 would invalidate the bearish case. If BCH surpasses this level, it could signal a stronger uptrend.

Final Thoughts

Bitcoin Cash is at a crucial turning point. While its recent surge has been fueled by strong demand, resistance levels ahead may determine whether the rally holds or fades. If BCH can close above $400 and sustain momentum, the next upside target could be $450+. However, failure to do so could invite sellers back into the market.

Traders should watch for a daily close above $351 for confirmation of a bullish trend shift.