Bitcoin Cash eyes 18% rally

Bitcoin Cash (BCH) added nearly 35% in value last month and gained 12% on November 21. Bitcoin (BTC) surged to $98,384 at the beginning of November 21; BCH and other leading cryptocurrencies are also following this rise. to spread.

Analysis of on-chain and technical indicators, as well as data from the derivatives market, shows that BCH could extend gains and retest its mid-April 2024 peak of $569.10.

Bitcoin hits all-time high, 2017 fork sparks hopes for investors

Bitcoin reached a record high of $98,384 on November 21; This is an important milestone for the cryptocurrency as it moves towards the $100,000 target. BTC was forked in 2017, creating a spin-off or alternative, Bitcoin Cash.

BCH peaked at $1,650 in May 2021. Since April 2024, BCH has been consolidating without a clear trend formation.

BCH price is up almost 30% since November 15, with on-chain indicators suggesting further rises are likely in the Bitcoin spinoff token.

Bitcoin Cash’s active addresses have increased steadily since August 2024. Santiment data shows a bullish trend in active addresses, meaning BCH investors maintain demand for the token, supporting the bullish thesis for the cryptocurrency.

The ratio of daily on-chain transaction volume to profit/loss exceeded 2 and reached 2,141 on Thursday. BCH traded on-chain recorded twice as many profitable transactions compared to losing transactions during the day. This is another key metric that paints a bullish chart for the token forked from Bitcoin.

Binance funding rate has been positive since November 10. According to Santiment data, over the last eleven days, traders have been optimistic about increases in the BCH price.

BCH price vs active addresses, binance funding rate, daily on-chain transaction volume to profit/loss ratio | Source: Santiment

The network’s realized profit/loss metric describes the net gain or loss of all investors trading the token in a 24-hour period. Bitcoin Cash’s NPL metric shows that investors are making a profit on their holdings; Small positive increases on the daily price chart represent NPL.

Investors need to keep their eyes peeled for significant movements in non-performing loans; Large positive increases indicate heavy profit-taking activity that could increase selling pressure on foreign exchange platforms.

As of November 21, 84.48% of the Bitcoin Cash supply is currently profitable. This metric helps traders evaluate the likelihood of making high profits or exiting existing BCH holders to determine the entry/exit time in spot market trading.

Comparison of BCH price and network realized profit/loss, percentage of total supply in profit | Source: Santiment Derivative investors are bullish on BCH

Derivatives market data from Coinglass shows a 33% increase in open interest in Bitcoin Cash. Open interest represents the total number of active contracts that have not yet been settled, which represents the demand for the BCH token among derivatives traders.

Derivatives trading volume increased by 613% to $2.35 billion in the same time period. The long/short ratio across Binance and OKX exchanges is above 1, close to 2, meaning investors remain bullish on BCH and expect prices to rise.

Bitcoin Cash derivatives data analysis | Source: Coinglass

The BCH futures open interest chart shows a steady increase in the metric as well as the BCH price increase since November 5, 2024. Open interest increased from $190.74 million to $254.87 million between November 5 and 21.

BCH futures open interest | Source: Coinglass Technical indicators show BCH could gain 18%

The BCH/USDT daily price chart on Tradingview.com shows that the token remains within the scope of consolidation. The token is stuck in the $272.70 to $568.20 range. BCH may try to break the upper limit of the range; A daily candle close above $568.20 could confirm the bullish trend.

The April 2024 high of $719.50 is the next major resistance for BCH, and the second key level is $805.80, an important level from May 2021.

The relative strength index reads 64, well below the “overvalued” zone above 70. The RSI supports the bullish thesis for BCH. Another important momentum indicator, moving average convergence divergence, is flashing green histogram bars above the neutral line. This means that the BCH price trend has a fundamentally positive momentum.

The formidable oscillator is consistent with the findings of the RSI and MACD; All three technical indicators point to the possibility of gains.

BCH/USDT daily price chart | Source: Crypto.news

Failure to close above the upper limit of the range may invalidate the bullish thesis. BCH could find support at the midpoint of the range at $419.90 and the 50-day exponential moving average at $388.50.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.