- Bitcoin Cash is gaining bullish traction, nearing the $500 mark with strong support from on-chain metrics and technical indicators.
- Rising Open Interest and a favorable MVRV ratio suggest more upside potential, possibly pushing BCH toward its 52-week high.
Bitcoin Cash (BCH) is showing promising signs of extending its recent rally, with bullish signals forming across both on-chain metrics and technical charts. The asset has climbed by 2% today, building on a 6.39% gain from Wednesday, and is now inching closer to the psychological $500 level. This marks the second consecutive day of gains within a rising channel pattern that suggests a continued uptrend.
On-Chain Metrics Signal More Room to Grow
According to Santiment’s Market Value to Realized Value (MVRV) data, BCH still has room before reaching levels that historically trigger profit-taking. Currently, the MVRV ratio stands at 0.665—below the 0.729 threshold seen in previous reversal points like March and May 2024. This leaves space for further price appreciation before investors begin to sell in bulk.
If BCH surpasses the threshold, it could retest the December 2024 MVRV peak of 1.01, boosting unrealized profits.
Derivatives Market Turns Bullish
The derivatives market is also flashing green. Bitcoin Cash’s Open Interest (OI) jumped over 7.8% in the last 24 hours, hitting $471.99 million, a sign of increased trading activity and optimism. Moreover, the OI-weighted funding rate flipped positive at 0.0014%, reinforcing the bullish tone as long positions outweigh shorts.
Bitcoin Cash Price Nears Breakout Point
Technically, BCH is moving towards a breakout from its current rising channel. The coin has surpassed the 61.8% Fibonacci retracement level of $490, and a close above this mark could ignite a rally toward the 78.6% Fibonacci level at $556. The Relative Strength Index (RSI) at 64 supports an upside bias, while the MACD indicator has avoided a bearish crossover, hinting at sustained buying pressure.
However, if BCH fails to maintain momentum above $490, a retracement to the lower channel boundary near $450 could occur.
With strong support from on-chain indicators, technical strength, and growing confidence among derivatives traders, Bitcoin Cash is setting its sights on the 52-week high of $640. A breakout above current resistance could mark the beginning of a more aggressive rally—making BCH one to watch closely in the coming days.
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