Bitcoin Cash (BCH) Soars Over 20% Amid Bullish Momentum

Bitcoin Cash (BCH) experienced a significant surge of over 20% on November 20, leading the top 100 cryptocurrencies. Analysts point to bullish chart patterns suggesting further gains. BCH extended its fortnightly gains to over 41%, trading at a 7-month high of $529 at the time of writing. This price rally was accompanied by a surge in daily trading volume, which doubled from the previous day, hovering around $1.48 billion.

Despite the recent price increase, BCH remains down 86% from its all-time high of $3,785.8, reached on December 20, 2017. Created in 2017 as a hard fork of Bitcoin to address scalability challenges, Bitcoin Cash has historically followed its predecessor. A key difference is the block size; Bitcoin Cash supports blocks of up to 32 MB, significantly larger than Bitcoin’s 1 MB limit, enabling it to process more transactions within the same timeframe.

BCH’s recent rally coincided with Bitcoin rising over 4.5% in the last 24 hours, reaching an all-time high of over $97,500 before cooling back to $97,093 at the time of writing. The crypto community’s enthusiasm surrounding Bitcoin potentially breaking the $100K mark has further boosted positive sentiment around Bitcoin Cash, driving a $178 million increase in its market cap over the past 24 hours.

Interest in Bitcoin has spiked following major announcements involving digital assets, including a proposal for a national Bitcoin reserve in the U.S. and plans to position the United States as the “crypto capital of the planet.” Periods of significant interest in Bitcoin often spill over into BCH and other related crypto assets, a phenomenon known as the “Bitcoin effect.” Notably, Bitcoin SV (BSV), another hard fork of Bitcoin, also rose by 12% over the past day.

Many market participants view BCH and BSV as cheaper alternatives to Bitcoin, offering exposure to a cryptocurrency tied to the original vision of a decentralized peer-to-peer electronic cash system.

Analysts Project Big Targets for BCH

Data shows that open interest in BCH futures has risen 49% over the past day, standing at $377 million at press time. A rise in open interest suggests growing investor activity and increased capital flow into Bitcoin Cash, culminating in price gains for the asset. Community sentiment around BCH is also bullish, with 97% of 40,516 traders expecting short-term price gains.

Sentiment on social media has turned positive, with several analysts and traders predicting strong price targets for the altcoin. Pseudonymous analyst CW noted that BCH bulls are currently attempting to overcome selling pressure at $530. He predicted that once the altcoin breaks past this level, it would likely rally swiftly to $640 and beyond, provided the trend remains strong.

In an earlier post, the analyst noted that BCH was close to completing a multi-month cup and handle pattern, typically considered a bullish signal in the long run if the pattern is validated. Another analyst, using the moniker XForceGlobal, observed that BCH has been accumulating for over 357 weeks while forming higher lows. He shared a BCH chart showing the formation of a massive triangle pattern, with a breakout above it typically leading to major gains for altcoins in technical analysis.

Meanwhile, analyst Javon Marks has set a long-term target of $3745, suggesting BCH could soar to over 600% from current levels, citing key bullish patterns that have flashed on the monthly chart.

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