Bitcoin Cash Is Seeking a 52-Week High: Rising Momentum Indicates More Gains Ahead

Bitcoin Cash (BCH) is seeing a lot of positive support as it approaches a 52-week high.  It is currently trading above $490, following a sharp two-day increase. BCH is preparing for a big breakout, which might attract a lot of attention in the crypto market. This is due to solid on-chain indicators and increased investor confidence.

The MVRV ratio indicates that there is still room for growth

Bitcoin Cash has a Market Value to Realized Value (MVRV) ratio of 0.665, indicating that there is still room for growth.   Profit-booking phases typically begin when MVRV rises over 0.729, as they did at market highs in March and May 2024. BCH appears to have the runway for another increase because its current ratio is significantly lower.

Derivatives data reveals a bullish picture

According to CoinGlass, Open Interest in BCH increased by more than 7.8% in 24 hours, indicating that more money is flowing in and more people are eager in trading.   A positive funding rate is a typical sign of bullish mood rising beneath the surface since it indicates that traders are willing to pay extra to keep long positions.

The technical setup indicates that there is a possibility of a breakout

BCH is trading in a rising parallel channel, approaching resistance at roughly $505.   If the asset breaks above this level cleanly, it may aim for $556, which is the 78.6% Fibonacci retracement of its most recent cycle.   The Relative Strength Index, at 64, indicates that the market is rising, while the MACD indicates that the momentum is strengthening.

Bitcoin Cash’s recent climb could be only the beginning, with everyone keeping an eye on the $500 psychological level.

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