Bitcoin Cash (BCH) is showing signs of a strong bullish reversal against Bitcoin (BTC) after breaking out of a well-defined triangle pattern, signaling a potential rally in the coming sessions. The BCH/BTC ratio, a key metric tracked by traders, has surged past its 200-day simple moving average (SMA) — a long-term trend indicator closely watched by institutional and retail investors alike.
Triangle Breakout Signals Momentum Shift
A symmetrical triangle pattern formed on the BCH/BTC daily chart—marked by descending highs and ascending lows—has been decisively broken to the upside. These patterns typically precede significant price movements, and BCH’s breakout suggests growing strength against Bitcoin.
The breakout above the 200-day SMA adds further credibility to the bullish case. Historically, such moves have often preceded extended trend reversals and capital inflows.
Key Resistance Levels Ahead
As BCH gains ground against BTC, immediate resistance is seen at 0.00467, the swing low from February 2024. If bullish momentum continues, the next major resistance sits at 0.00636, the high from December 2023.
However, the outlook would be invalidated by a breakdown below the monthly low of 0.00373, which would indicate a failed breakout and likely shift sentiment bearish.
Bitcoin Cash Outperforms in the Short Term
Over the last 24 hours, BCH has outperformed all other top-100 cryptocurrencies, with strong demand driving its price to $466.91. This surge reflects not only technical strength but also growing interest in alternative blockchain solutions as the broader market evaluates utility, scalability, and real-world adoption.
HYPE Token Shows Bearish Divergence
In contrast to BCH’s bullish breakout, HYPE, the native token of decentralized exchange Hyperliquid, is flashing warning signs. While the token recently hit a new high of $44, the 14-day Relative Strength Index (RSI) is diverging lower — a bearish divergence that often precedes price reversals.
This momentum weakening suggests that HYPE’s rally may be cooling, potentially signaling the end of its three-month, fivefold surge.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.