- Bitcoin Cash is up 71% in 30 days, with its market capitalization nearly doubling to $11.3 billion.
- BCH open interest also reached its highest level in over seven months, suggesting strong demand for BCH futures.
Bitcoin Cash (BCH) has gained 71% in a month, to trade at a multi-month high of $574, as of press time. Its market capitalization also rose from $6.6 billion to $11.3 billion, with the rally reflecting broader gains in the altcoin market.
Bitcoin Cash’s rally is gaining momentum as the token moves in an ascending parallel channel, indicating the continuation of the uptrend.
At press time, BCH is testing resistance at the upper boundary of the channel. However, trading volumes remain low, as shown by the volume histogram bars, raising fears of a breakout.
The Relative Stochastic Strength Index (RSI) was 85, indicating that BCH is overbought. Despite this, its continued trend above the signal line shows that momentum remains bullish.
Historically, an overbought Stoch RSI has not always led to a price correction, suggesting that the rally could continue.
Source: TradingView
The Moving Average Convergence Divergence (MACD) also reflects bullish momentum after increasing and widening the gap from the signal line.
These bullish signs indicate a sustained uptrend for Bitcoin Cash, but for the price to break the ascending channel boundary and exceed $600, an increase in buying activity is necessary.
Are Bitcoin Cash Whales Joining the Rally?
Data from In the block shows a spike in BCH whale activity after large transactions increased from 506,210 BCH to 1.25 million BCH.
These whales, which represent 16.71% of the Bitcoin Cash supply, are likely buying as shown by the net flow from large holders turning positive. This indicates high purchasing activity from this cohort.
Source: In the block
The accumulation of these whale addresses could strengthen Bitcoin Cash’s bullish momentum and pave the way for further gains.
Increased participation of derivatives market signals…
Besides the growing demand for whales, the derivatives market is also showing a bullish outlook due to the high demand for BCH futures.
On December 4, BCH open interest jumped to $407 million, its highest level in over seven months.
Source: Coinglass
Bitcoin Cash’s Open Interest growth is remarkable, as it is almost on par with that of Tron (TRX), which stood at $438 million at press time, although TRX has a market cap three times higher than that of BCH.
Read Bitcoin Cash (BCH) Price Forecast 2024-2025
Increased market participation could be beneficial for Bitcoin Cash as the Long/Short ratio shows that most traders are opening long positions.
On Binance, 74% of traders with open BCH futures positions are long, indicating a bullish bias. Additionally, the Long/Short ratio for BCH on Binance reached a monthly high of 2.92.
Source: Coinglass
