Chart of the Week: Bitcoin Cash Eyes Double-Digit Rally, Bullish Indicators Point to Gains in BCH
The recent price action of Bitcoin Cash (BCH) has been nothing short of impressive, with the token adding nearly 35% to its value in the past month and rallying 12% on Nov. 21. As the cryptocurrency market continues to ride the wave of a potential bull run, BCH is poised to extend its gains and retest its mid-April 2024 peak of $569.10.
Bitcoin Hits All-Time High, Fork from 2017 Ignites Hope for Traders
The record high of $98,384 hit by Bitcoin (BTC) on Nov. 21 has sparked hope among traders, with many eyeing a run to the $100,000 target. The fork from 2017, which created Bitcoin Cash (BCH), has also ignited interest in the spin-off token. BCH has been consolidating since April 2024, but recent on-chain indicators suggest a further rally is likely.
Derivatives Traders Are Bullish on BCH
The derivatives market data from Coinglass shows a 33% increase in open interest in Bitcoin Cash, with a 613% increase in derivatives trade volume to $2.35 billion. The long/short ratio is above 1, closer to 2, indicating that traders remain bullish on BCH and expect prices to rally. The BCH futures open interest chart shows a steady increase in the metric, alongside BCH price gain since November 5, 2024.
Technical Indicators Show BCH Could Gain 18%
The BCH/USDT daily price chart on Tradingview.com shows that the token remains within a consolidation range from $272.70 to $568.20. BCH could attempt to break past the upper boundary of the range, with a daily candlestick close above $568.20 confirming the bullish breakout. The relative strength index (RSI) reads 64, well below the “overvalued” zone above 70, supporting a bullish thesis for BCH. The moving average convergence divergence (MACD) flashes green histogram bars above the neutral line, indicating an underlying positive momentum.
Key Indicators and Metrics Supporting a Bullish Thesis for BCH
- 90-Day Active Addresses: BCH’s active addresses have climbed consistently since August 2024, indicating sustained demand for the token.
- On-Chain Transaction Volume: The ratio of daily on-chain transaction volume in profit to loss exceeds 2, indicating more profitable transactions than losses incurred.
- Binance Funding Rate: The funding rate is positive since Nov. 10, indicating that traders have been optimistic about gains in BCH price.
- Network Realized Profit/Loss Metric: 84.48% of Bitcoin Cash’s supply is currently profitable, implying high profit-taking activities that could increase selling pressure across exchange platforms.
- Derivatives Market Data: A 33% increase in open interest and a 613% increase in derivatives trade volume to $2.35 billion indicate a high demand for BCH among derivatives traders.
Actionable Predictions
Based on the analysis and indicators presented, here are some actionable predictions for BCH:
- Double-Digit Rally: BCH is likely to extend its gains and retest its mid-April 2024 peak of $569.10.
- Breakout past $568.20: BCH could attempt to break past the upper boundary of the consolidation range, confirming a bullish breakout.
- Gains of 18%: BCH could gain 18% in the coming weeks, driven by sustained demand and positive indicators.
Disclosure
This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
