Key Takeaways
- Bitcoin Cash (BCH) rallies from its low of $250 toward $500, outperforming many altcoins in its price.
- On-chain Open Interest and price rallies for BCH as volume struggles to show real momentum.
- Higher timeframes, such as daily and weekly, suggest a bullish rally could continue above $640 and $800, respectively.
Bitcoin Cash (BCH) has emerged as one of the best-performing cryptocurrency altcoins over the last month since hitting a key low of $250. The price has since rallied from its key demand zone, forming a series of swing highs and maintaining its rally on the daily timeframe, reaching a potential high of $640.
Recent bullish price action has gained strong technical backing on-chain, with other technical indicators pointing to a strong price rally for Bitcoin Cash (BCH) towards new highs. Will BCH protect its current price rally towards a potential high of $1,000 and above, as the price has struggled since hitting such a milestone?
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On-chain Data Suggest Strong Price Rally
Source – BCH On-chain Analysis From Coinglass
On-chain data from Coinglass has indicated a strong open interest in the BCH token, followed closely by its lagging price. However, its volume has struggled to meet the expectations of bullish market sentiment in previous months, which saw BCH hit a high of $800.
This mixed reaction from BCH’s volume will be troubling if there is no strong volume backing the current bullish rally, as the price could collapse in the face of a sudden market crash. However, with a strong volume accompanying the price, we could see bullish dominance leading to a price rally towards the high of $640 before potentially reaching its major resistance level.
With strong volume, Open Interest, and a price rally to the upside, this could signal a sustained rally and garner significant market attention among whales and traders seeking to push the price of BCH to a potential new high of $640.
While on-chain data suggests the potential for Bitcoin Cash to rally higher, gaining bullish influence on its price, let’s discuss what technical analysis and market sentiment regarding the current price action for Bitcoin Cash (BCH) would suggest.
BCH Technical Analysis as Bulls Dominate Price
Source – BCH 1D Price Analysis from TradingView
Breaking out of its bullish wedge on the daily timeframe, the price of BCH rallied with strong price action to the upside, aiming to break above its key resistance of $800. This has prevented the price of Bitcoin Cash from hitting a key milestone rally of $1,000.
However, current price action on a higher timeframe suggests that the price of BCH will continue its price trend, as it is likely to break and retest the key zone of $640. A close and retest around the $640 zone would confirm a strong trend shift from bearish to bullish, allowing the price to attempt a potential yearly high.
If the price of Bitcoin Cash is rejected around this zone, we could see the price retrace towards its demand zone of $250, where it showed a strong bullish price push to the upside, as this area would support a potential price rally.
Traders and investors would pay close attention to the price as it approaches the key resistance zone before making investment decisions either to the upside or downside.