BCH jumped over 20% on Nov. 20, leading the top 100 cryptos, as analysts point to bullish chart patterns hinting at more gains.
Bitcoin Cash’s (BCH) rally has extended its fortnightly gains to over 41%, with the altcoin trading at a 7-month high of $529 at the time of writing. The crypto asset’s price rally was accompanied by a surge in daily trading volume, which had doubled from the previous day and was hovering around $1.48 billion.
Despite the recent price rise, the token remains down 86% from its all-time high of $3,785.8, reached on Dec. 20, 2017.
Bitcoin Cash, created in 2017 as a hard fork of Bitcoin to address scalability challenges in the flagship crypto asset, has historically followed in the footsteps of its predecessor.
A key difference between the two assets is the block size; Bitcoin Cash supports blocks of up to 32 MB, significantly larger than Bitcoin’s 1 MB limit. This larger block size enables Bitcoin Cash to process a greater number of transactions within the same time frame.
BCH’s recent rally coincided with Bitcoin rising over 4.5% in the last 24 hours, reaching an all-time high of over $97,500 before cooling back to $97,093 at the time of writing.
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The crypto community’s hype surrounding the crypto king potentially breaking the $100K mark in the coming days has further boosted positive sentiment around Bitcoin Cash, driving a $178 million increase in its market cap over the past 24 hours.
Meanwhile, interest in Bitcoin has spiked following President Donald Trump’s announcement about major initiatives involving digital assets, including a proposal for a national Bitcoin reserve in the U.S. and a promise to position the United States as the “crypto capital of the planet.”
Periods of significant interest in Bitcoin have often spilled over into BCH and other crypto assets closely related to Bitcoin, a phenomenon known as the “Bitcoin effect.” Notably, Bitcoin SV (BSV), another hard fork of Bitcoin, also rose by 12% over the past day.
Many market participants view BCH and BSV as cheaper alternatives to Bitcoin, offering exposure to a cryptocurrency tied to the original vision of a decentralized peer-to-peer electronic cash system.
Analysts project big targets
Data from CoinGlass shows that open interest in BCH futures has risen 49% over the past day, standing at $377 million at press time. A rise in open interest suggests growing investor activity and increased capital flow into Bitcoin Cash, culminating in price gains for the asset.
Community sentiment around BCH is also bullish, with 97% of 40,516 traders on CoinMarketCap expecting short-term price gains.
Similarly, sentiment on X has turned positive, with several analysts and traders predicting strong price targets for the altcoin.
Pseudonymous analyst CW noted that BCH bulls are currently attempting to overcome selling pressure at $530. He predicted that once the altcoin breaks past this level, it would likely rally swiftly to $640 and beyond, provided the trend remains strong.
In an earlier X post, the analyst noted that BCH was close to completing a multi-month cup and handle pattern, which is typically considered a bullish signal in the long run if the pattern is validated.
Another analyst, using the moniker XForceGlobal, observed that BCH has been accumulating for over 357 weeks while forming higher lows. He shared a BCH chart showing the formation of a massive triangle pattern, with a breakout above it typically leading to major gains for altcoins in technical analysis.
Meanwhile, analyst Javon Marks has set a long-term target of $3745, suggesting BCH could soar to over 600% from current levels, citing key bullish patterns that have flashed on the monthly chart.
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