Bitcoin Cash (BCH) is currently priced at $379, experiencing a minor 0.58% decrease in the past 24 hours. Despite this recent dip, BCH has still managed to increase by approximately 7% over the last week.
When examining the one-day chart, BCH exhibits several bullish indicators. The Moving Average Convergence Divergence (MACD) sits above the signal line, indicating an ongoing uptrend.
With the Relative Strength Index at 56, buyers seem to slightly outnumber sellers. Nonetheless, this figure is starting to trend downwards, potentially signaling a shift if there is no significant increase in buying pressure.
While BCH successfully turned the $370 resistance level, corresponding to the 0.681 Fibonacci level, the gains were not sustained. Should the resistance be conquered again, paving the way for continued upward momentum, the next target for BCH would be the 1.618 Fibonacci level at $420.
An analysis of on-chain data hints at a probable continuation of this rally fueled by escalating whale involvement and expanding network activity.
The Role of Whale Activity and Network Expansion in Driving the Rally
Information from IntotheBlock reveals a surge in BCH transactions exceeding $100,000 to 1.13M, marking an impressive 123% surge within a 24-hour span.
Whale participation can act as a catalyst for price escalation. However, these whales only possess control over 16% of the total BCH supply, indicating that broader retail market interest is essential for a substantial price recovery.
Simultaneously, the Bitcoin Cash network has witnessed a spike in usage, with active addresses leaping from 45,000 to 121,000 in just one day.
The uptick in active addresses has the potential to further propel the rally by reflecting an augmented interest in the token. Should these addresses actively engage in BCH trading, price volatility could ensue.
Surge in Bitcoin Cash Open Interest
BCH open interest has recently soared to $232 million, reaching its highest point in over two months. This surge indicates a heightened market engagement as traders open new positions or add to existing ones in BCH.
The uptick in open interest coinciding with positive funding rates, signaling an uptick in long positions, showcases a strong belief among derivative traders regarding BCH’s potential for extended gains.
The optimistic sentiment in the derivatives market, alongside escalating whale activity and network utilization, collectively construct a bullish scenario for BCH, hinting towards the likelihood of a rally surpassing the $400 mark.