 surges 22% amid market recovery, but key indicators suggest potential resistance ahead. Will BCH break){kind=link}
Key Insights:
- BCH Rallies 22% to $391 Amid Market Recovery
- Long/Short Ratio Hits 1.10, Indicating Bullish Sentiment
- BCH Stuck in Descending Channel, Faces Ichimoku Cloud Resistance
Bitcoin Cash (BCH) achieved a 22% increase in its value during the last 24 hours to reach $391 to secure a position among the leading cryptocurrency gains today. The market capitalization of BCH increased 22% to $7.75 billion as its trading volume surged 131.66% to $1.07 billion, according to CoinMarketCap.
The market recovery for crypto assets continues after Bitcoin (BTC) and Ethereum (ETH) experienced difficulties in February. Both BTC and ETH demonstrated 3% gains in today’s market, which indicates investors have regained their confidence.
U.S. Commerce Secretary Howard Lutnick’s announcement that President Trump will present Bitcoin reserve plans during the White House Crypto Summit on March 7 served as a major market driver for the recovery. The market interpreted this news as positive, so investors have started moving funds from safer assets to riskier options, including Bitcoin along with other altcoins
Despite this rally, the Bitcoin ETFs faced substantial withdrawals of $143.5 million on Tuesday following the earlier $217 million withdrawal, while Ethereum ETFs attracted $14.6 million in net inflows. The outflows from cryptocurrency reserves have failed to stop the price growth of Bitcoin alongside altcoins.
Bitcoin Cash Long/Short Ratio Shows Bullish Shift but Volatility Remains a Risk
Meanwhile, the trader sentiment has shown shifting patterns in the BCH Long/Short Ratio Chart since the beginning of the two-week period, as short positions controlled most of the time. However, data from Coinglass shows that starting from February 25 long positions have steadily risen, indicating an increase in bullish market predictions.
The Long/Short ratio reached 1.20 on March 1 and March 2 as buying pressure intensified before prices experienced a brief market correction.
A March 5 analysis shows BCH traders favor long positions over short positions, with a Long/Short ratio measuring 1.10.
Short sellers remain active in BCH price, thus maintaining a neutral ratio, while investors show increasing optimism about BCH’s price growth potential.
If the Long/Short ratio exceeds 1.10, it suggests upcoming increased BCH price momentum because it indicates additional buying activity. However, the price shows increased risk for a downward movement when the ratio falls below 1.00.
Bitcoin Cash Stuck in a Descending Channel—Can Bulls Break Free?
Bitcoin Cash maintains its position within a descending channel, as the price has established consecutive lower highs and lower lows since reaching its peak during late 2024.
The Ichimoku Cloud operates as a dynamic barrier, which has strengthened downward pressure to stop all meaningful breakout attempts.
The current trading price of BCH maintains a position just above the essential support zone between $290 and $347, where previous rebounds occurred.
A successful buying momentum at this price level could propel BCH to $387 and potentially reach $443 before achieving $500 if bullish momentum remains strong.
A breakout confirmation requires BCH to surpass its descending channel’s upper border while gaining increased buying volume to reclaim important resistance points. However, a breakdown of the $270–$300 support area would signal an additional downward movement for BCH.
A reversal signal for traders will appear when price action maintains above the channel and trading volume increases significantly. BCH’s future price direction will be established during the upcoming trading days as it fights for escape from its bearish trend.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
