Bitcoin Cash (BCH) is showing signs of a renewed uptrend, capturing market attention as its price action decouples from Bitcoin's. After a period of sideways consolidation, BCH price has begun to move higher, with a recent 2% increase in 24 hours to approximately $529.29, while Bitcoin declined 0.68%. This bounce suggests buyers are gradually returning, helping the asset recover from its recent dip.
Key technical indicators are aligning to support a potential breakout. The price is holding a crucial multi-year ascending trendline and defending a key support zone between $508.9 and $527.3, which aligns with the weekly 50-period moving average. Momentum indicators like the weekly RSI are stabilizing after nearing oversold levels, opening the door for a potential bullish divergence.
Notably, derivatives data reveals growing trader interest. Open Interest (OI) for BCH has climbed significantly from around $300–$350 million in late November to roughly $650–$700 million, indicating increased positioning through futures and options. However, this rise in leveraged bets has not yet been accompanied by a strong price breakout, and on-chain activity, measured by active addresses, has slowed. This suggests the current price stability is being supported more by derivatives positioning than fresh spot demand, making the market more sensitive to sentiment shifts.
Analysts point to a potential 25% upside move if buying momentum continues. A sustained move could target the $650–$700 resistance zone, with a breakout potentially opening the path toward $780–$800. Furthermore, with its trading volume up 7.93% to over $482 million, the current uptick appears backed by genuine demand rather than mere speculation. The price is currently hovering around the middle Bollinger Band, signaling the uptrend is still developing.
The rally has also impacted market rankings, with BCH having previously dethroned Cardano (ADA) to enter the top 10 cryptocurrencies by market cap. The ongoing strength poses a question for other major assets, with analysis suggesting Bitcoin Cash could potentially challenge Dogecoin's (DOGE) position if its upward momentum is sustained.
