Bitcoin Cash (BCH) has significantly increased in value, adding nearly 35% in the past month and rallying 12% on November 21. Bitcoin (BTC) also experienced a notable rally, reaching $98,384 early on November 21, with BCH and other major cryptocurrencies following suit.

Bitcoin Hits All-Time High, Fork from 2017 Ignites Hope for Traders

Bitcoin reached a record high of $98,384 on November 21, marking a crucial milestone as it aims for the $100,000 target. In 2017, BTC was forked to create Bitcoin Cash, an alternative cryptocurrency.

BCH hit a peak of $1,650 in May 2021. Since April 2024, BCH has been consolidating without a clear trend. However, BCH price has rallied nearly 30% since November 15, and on-chain indicators suggest that further gains are likely.

Bitcoin Cash’s active addresses have been increasing consistently since August 2024. Data shows a sustained demand for BCH, supporting a bullish outlook for the cryptocurrency.

The ratio of daily on-chain transaction volume in profit to loss is 2.141 as of Thursday, indicating twice as many profitable transactions as loss-incurring ones. This metric supports a positive outlook for BCH.

Binance’s funding rate has been positive since November 10. Traders have been optimistic about gains in BCH price, according to recent data.

84.48% of Bitcoin Cash’s supply is currently profitable as of November 21. This metric helps traders gauge the likelihood of significant profit-taking or exits by existing BCH holders, aiding in timing entry or exit in spot market trades.

Derivatives Traders Are Bullish on BCH

Data from the derivatives market shows a 33% increase in open interest for Bitcoin Cash, representing demand for BCH among derivatives traders. Derivatives trade volume surged 613% in the same period, reaching $2.35 billion. Across exchanges, the long/short ratio is above 1, indicating bullish sentiment and expectations of further price rises.

The BCH futures open interest chart shows a steady increase, with open interest climbing from $190.74 million to $254.87 million between November 5 and 21, 2024.

Technical Indicators Show BCH Could Gain 18%

The BCH/USDT daily price chart indicates that BCH remains within a consolidation range from $272.70 to $568.20. A daily candlestick close above $568.20 could confirm a bullish breakout.

The next major resistance for BCH is at the April 2024 high of $719.50, followed by a key level at $805.80 from May 2021. The relative strength index (RSI) reads 64, which is below the “overvalued” zone of 70, supporting a bullish outlook.

Other key momentum indicators, such as the moving average convergence divergence (MACD) and the awesome oscillator, also indicate positive momentum for BCH. All three technical indicators point to the likelihood of gains.

If BCH fails to close above the upper boundary of the range, it could find support at the midpoint of $419.90 and the 50-day exponential moving average at $388.50.

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

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