Bitcoin Cash signals potential rally above $400
Key Takeaways
- Bitcoin Cash (BCH) shows signs of a potential rally above the $400 mark.
- Large transaction volumes and increasing network activity indicate growing interest.
- Derivative traders and whales (large investors) play a crucial role in price development.
Current Market Development of Bitcoin Cash
Bitcoin Cash (BCH) recently experienced a slight correction of 0.58% and is currently trading at around $379 USD. Despite the decline, the price has risen by about 7% over the past seven days. The daily chart continues to show bullish signals, indicating a possible continuation of the upward trend.
The Moving Average Convergence Divergence (MACD) indicator is above the signal line, suggesting an ongoing uptrend. The Relative Strength Index (RSI) is at 56, meaning that buyers slightly outweigh sellers. However, the RSI shows a slight downward movement, which could indicate a potential trend reversal unless there is a renewed increase in buying activity.
Key Resistance Levels and Fibonacci Marks
Bitcoin Cash recently broke through the resistance at the 0.681 Fibonacci mark ($370 USD) but was unable to hold these gains. If BCH can surpass this resistance again, the next target could be the 1.618 Fibonacci mark at $420 USD.
On-chain data suggests this is possible, as whale activity (large investors holding significant amounts of cryptocurrency) is increasing, and network activity is also on the rise.
Whales and Network Activity as Drivers
Data from IntoTheBlock shows that BCH transaction volume over $100,000 USD increased by 123% to $1.13 million USD in the last 24 hours. This increase in whale activity can be seen as a potential price driver. However, whales control only about 16% of the total BCH supply. For the price to continue rising, retail market interest is also necessary.
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At the same time, the Bitcoin Cash network has seen an increase in active addresses. Within 24 hours, the number of active addresses rose from 45,000 to 121,000. An increase in active addresses indicates growing interest in the cryptocurrency and could lead to increased volatility if these addresses actively trade in BCH.
Open Interest in BCH Increases
Open interest in BCH, or the number of open positions in derivative markets, recently rose to $232 million USD, the highest level in over two months. This indicates that more traders are opening positions in BCH or expanding existing ones.
This increase in open interest coincided with positive funding rates, suggesting an increase in long positions (buy positions). This indicates that many derivative traders expect BCH to continue expanding its gains.
Our Assessment
The combination of increasing whale activity, rising network activity, and positive sentiment in the derivative market points to a possible continuation of the BCH rally. If Bitcoin Cash manages to break through the resistance at $370 USD sustainably, the $400 mark could be within reach. However, retail market interest remains crucial for long-term price development.
Sources: TradingView, IntoTheBlock, Coinglass
| Symbol | BCH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
|
| Price | $531.43 |
| 24h % | 8.26 % |
| 7d % | 21.76 % |
| 30d % | 50.00 % |
| 60d % | 55.22 % |
| 1y % | 135.23 % |
| Market Cap | $10,519,007,496.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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