Mapping Bitcoin Cash’s rally past $600 amid THESE bullish signs

  • Bitcoin Cash has rallied by 71% in 30 days, with its market capitalization increasing nearly two-fold to $11.3 billion. 
  • BCH’s Open Interest has also reached its highest level in over seven months, suggesting high demand for BCH futures.

As a seasoned analyst with over two decades of experience in the financial markets, I must say that the recent surge in Bitcoin Cash (BCH) has caught my attention. With a 71% rally in just 30 days and an impressive doubling of its market capitalization to $11.3 billion, BCH is clearly outperforming many other assets in the crypto space.


I’ve seen some impressive growth lately as an investor in Bitcoin Cash [BCH]. In just a month, it’s surged by an astounding 71%, reaching a multi-month high of $574 at the moment I’m speaking. This surge has also boosted its market capitalization significantly, from $6.6 billion to a whopping $11.3 billion. The rally in Bitcoin Cash seems to echo the broader upward trend we’re seeing across the altcoin market.

The upward surge of Bitcoin Cash appears to be growing stronger, with the digital coin currently moving along an increasing parallel channel – suggesting that its bullish movement will persist.

Currently, BCH is attempting to break through the top limit of its price channel, but trade volumes are relatively light, as indicated by the small volume histogram bars, which could signal potential difficulties in a successful breakout.

In simpler terms, when the Stochastic Relative Strength Index (RSI) reached 85 for Bitcoin Cash (BCH), it suggested that the cryptocurrency was overbought. However, BCH’s persistence in moving above its signal line suggests that the upward momentum remains strong and bullish.

Historically, a situation where the Stochastic RSI indicates the market is overbought doesn’t guarantee a price drop, implying that the upward trend might persist.

After a rise, the Moving Average Convergence Divergence (MACD) showed an increase in bullish strength by expanding its distance from the signal line.

A positive trend in Bitcoin Cash seems likely to continue, hinted by optimistic indicators. However, for the price to surge beyond $600 and escape the confines of its upward trajectory, there needs to be a significant boost in purchasing actions.

Are Bitcoin Cash whales buying into the rally? 

According to IntoTheBlock’s data, there was a significant rise in the number of large Bitcoin Cash transactions following an increase from approximately 506,210 BCH to 1.25 million BCH. This suggests that whale activity on the BCH network has increased substantially.

16.71% of Bitcoin Cash’s total supply is currently being actively purchased by a group of whales, as suggested by the recent reversal in the large holder’s net flow data, which indicates an increase in buying activity among them.

The increase in Bitcoin Cash held by these whale wallets might boost its bullish trend, potentially leading to even greater profits.

Increased participation from the derivatives market signals…

In addition, the increasing interest from whales, along with a strong demand for Bitcoin Cash futures, suggests a positive or optimistic trend in the derivatives market.

On December 4th, the Open Interest for Bitcoin Cash (BCH) reached an all-time high of $407 million in over half a year.

The surge in Open Interest for Bitcoin Cash is worthy of mention, as it’s almost equivalent to that of Tron (TRX), currently standing at $438 million, even though Tron has a market capitalization three times greater than Bitcoin Cash.

Read Bitcoin Cash’s [BCH] Price Prediction 2024–2025

An increase in market involvement might prove advantageous for Bitcoin Cash, given that the Long/Short Ratio indicates that a majority of traders are opting to open long positions.

74 out of every 100 traders holding future contracts for Bitcoin Cash on Binance are betting that its price will rise (going long), suggesting a generally optimistic outlook. Furthermore, the ratio of long positions to short positions for Bitcoin Cash on Binance has peaked at an impressive 2.92 this month.

Read More

2024-12-04 21:44