Bitcoin Cash (BCH) Price Prediction: On-chain data shows a bullish trend, set to create a new annual high above $600.

Bitcoin Cash (BCH) briefly broke through 600 USD over the weekend, but the price subsequently retreated, currently reporting at 580 USD during the early European session today (28th). The rise in open interest (OI) in the derivatives market further supports the bullish sentiment for BCH, with OI reaching its highest level since April 2024. Additionally, technical analysis indicates that BCH still has further upside potential, with a target price of 640 USD.

BCH derivatives and on-chain data show bullish tendencies

CoinGlass data shows that the open interest for Bitcoin Cash futures on the exchange rose from $432.04 million on Thursday to $655.31 million on Monday, reaching the highest level since April 10, 2024. The increase in open interest represents new or additional funds entering the market and new buying pressure, which may drive the current BCH price pump.

(Source: CoinGlass)

In addition, as shown in the figure below, CryptoQuant data indicates that the buying pressure for BCH is rising. The buying side CVD (Cumulative Volume Delta) for BCH has been positive and has been continuously increasing since the beginning of May.

This indicator measures the cumulative difference between market buying volume and selling volume over a three-month period. When the 90-day CVD is positive and continuously rising, it indicates that the market is in a buying-dominant phase; whereas when the 90-day CVD is negative and continuously falling, it indicates that the market is in a selling-dominant phase.

(Source: CryptoQuant)

BCH price prediction: set to create a new annual high above 600 dollars

The price of Bitcoin Cash broke through the daily resistance level of 542.50 USD on Friday and rebounded, closing above the resistance trend line of the rising channel on Sunday, setting a new annual high of 608.20 USD. As of Monday when this article was written, BCH has consolidated its recent gains, trading at around 590.30 USD.

If BCH continues its upward trend, its pump may extend to the high of 640 USD on December 6. If it successfully closes above that level, a further bullish movement is expected, reaching up to the high of 719.50 USD on April 5, 2024.

The Relative Strength Index (RSI) indicator on the daily chart shows a value of 71, indicating strong bullish momentum in an overbought state. The Moving Average Convergence Divergence (MACD) on the daily chart showed a bullish crossover on Friday, signaling a buying opportunity and suggesting an upward trend in the future.

On the contrary, if BCH faces a correction, it may continue to decline and retest its daily support level of 542.50 USD.

(Source: Trading View)