BCH returns to its major technical zones following a confirmed breakout, with price retracing into layered support levels that developed after a strong impulse. The move reflects a controlled structural phase within an expanding market environment.
Breakout Retest Confirms Structural Progress
BCH maintains its structural trajectory as the price revisits critical areas shaped during the recent breakout on the H4 timeframe. A chart shared by analyst EliZ (@eliz883) outlines how the asset retraces into the previous breakout zone, the 0.75 equilibrium area, and the descending trendline that has now shifted into dynamic support. These confluences indicate that the current pullback remains aligned with a continuation structure.
The compression phase that preceded the breakout created a narrowing range where BCH consistently formed higher bases beneath resistance. Once the asset moved above the descending trendline, momentum accelerated quickly, lifting price toward the 600 region before the retracement began. This expansion phase shows how the earlier buildup translated into directional strength.
BCH is as of writing trading at $574.96, the retracement reflects normal market rotation rather than a shift in directional intent. The pullback continues to respect higher lows, reinforcing the idea that the market is stabilizing ahead of a potential continuation leg.
Key Confluence Areas Shape Market Reaction
The breakout level around the 560 region represents a major structural anchor for BCH. Returning to this zone helps validate the breakout and allows the market to confirm that former resistance has transitioned into support. This behavior is consistent with trending structures that seek volume confirmation after impulsive movements.
The equilibrium area near the 0.75 ratio acts as a mid-range reference for the preceding rally. Retracements into equilibrium commonly invite renewed participation, providing balanced entry conditions for traders who avoided chasing higher prices during the breakout. BCH revisiting this zone maintains the symmetry of the expansion and retracement cycle.
The descending trendline forms the final confluence supporting the current structure. After breaking above this trendline decisively, BCH returns to retest it as dynamic support. The movement shown on the chart indicates a controlled pull into this region, followed by a projected recovery into higher levels, reinforcing the structural continuity.
Volume Cycles Indicate Renewed Market Participation
Volume developments across the broader market provide additional context for the ongoing retracement. A large volume surge in late June marked a liquidity event that propelled BCH upward before the market settled into a cooling phase. This period allowed traders to reposition while price normalized after the sharp impulse.
Another volume increase appeared in late March, accompanying a quick rise toward the 700 area. These surges show that BCH tends to attract concentrated participation during directional phases. When volume expands, market activity accelerates; when it contracts, structure consolidates before the next cycle forms.
Recent months reveal gradual volume rebuilding, especially from early November. As BCH climbed back toward the 600 range, participation increased, supporting the emerging pattern of higher lows. The current pullback unfolds within this rising-volume environment, suggesting renewed accumulation rather than structural weakness.