Essential Insights
Bitcoin Cash (BCH) has faced significant challenges throughout much of the year. Since the beginning of 2025, the cryptocurrency has experienced a decline of almost 35%.
However, following U.S. President Donald Trump’s announcement of a 90-day suspension on reciprocal tariffs, Bitcoin Cash’s price surged by 10%, nearing the $300 mark.
This uptick aligns with a wider market recovery that has struggled for several weeks. Nevertheless, BCH may encounter substantial resistance levels that could limit its potential breakout despite this rebound.
Resistance Ahead for BCH
Although Bitcoin Cash’s price has remained above the $300 threshold, the In/Out of Money Around Price (IOMAP) signifies that the altcoin may confront resistance in the near future.
The IOMAP focuses on addresses that purchased the token close to its current price range — commonly within a 15% margin. This approach provides a clearer perspective on short-term sentiment as well as potential support and resistance zones.
If a significant number of addresses are “in the money,” this may act as support. Conversely, if many are “out of the money,” it may present resistance as holders seek to break even once the price reaches their average on-chain cost basis.
According to IntoTheBlock, BCH faces major resistance around $322, with approximately 270,000 addresses holding over 1 million BCH at a loss.
Thus, if Bitcoin Cash’s price nears this supply wall, it could encounter a setback that may undo all its recent advancements.
Potential for a Bearish Reversal
A further evaluation of the cryptocurrency’s on-chain metrics reveals a significant increase in the Mean Dollar Invested Age (MDIA). The MDIA assesses the average age of all coins (or tokens) in circulation, adjusted for average purchase price.
When the MDIA rises, it indicates that most coins are not being actively traded. This dormancy suggests that the price is likely to stagnate.
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In contrast, a decline in MDIA signifies that dollar-weighted holdings are in flux, which is generally bullish. However, as the current trend for BCH indicates otherwise, the price may find it challenging to maintain a prolonged rally.
BCH Price Overview: Coin Still Constrained
From a technical standpoint, Bitcoin Cash’s price has yet to break free from a descending triangle formation. As evidenced below, BCH is currently testing the upper trendline of the triangle.
Nonetheless, the Chaikin Money Flow (CMF) remains below the zero line, indicating that selling pressure outweighs accumulation.
If this trend persists, BCH’s price may decline to $249.90. However, this downward momentum could shift if the CMF moves above the zero signal line.
In such a situation, Bitcoin Cash’s price could rise to $333.46. If overall market conditions improve further, the cryptocurrency’s value might see a rally up to $400.
Disclaimer:
This article is intended for informational purposes only. It does not serve as financial advice and should not be interpreted as such. We cannot guarantee the completeness, reliability, or accuracy of this content. All investments carry risk, and past performance is not indicative of future results. We recommend consulting with a financial advisor before making any investment choices.
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