Bitcoin Cash (BCH) price prediction: BCH target price is at a 52-week high, on-chain data shows there is still room for rise.

Gate News, Bitcoin Cash (BCH) price rose 2% as of Thursday's press release after soaring over 6% on Wednesday. BCH is showing a parallel channel pattern, indicating a strengthening bullish momentum and approaching the psychological barrier of $500. Additionally, MVRV on-chain data shows that BCH still has room to rise before reaching the key level that caused the previous reversal.

On-chain data shows strong bullish momentum for Bitcoin Cash

The weekly market capitalization to realized value (MVRV) indicator from Santiment shows that Bitcoin Cash still has the potential to continue its pump trend. The MVRV indicator calculates the average profit and loss of Bitcoin Cash investors. A higher ratio indicates a greater number of profitable investors, which signals the risk of profit-taking.

Currently, the MVRV ratio is 0.665, while a ratio of 0.729 has led to profit-taking in BCH, as seen in March and May 2024. Therefore, there is potential upside before investors begin to take profits.

(Source: Santiment)

It is worth noting that breaking through 0.729 could potentially reach a peak of 1.01 in December 2024, further enhancing investors' profits.

Derivatives traders expect gold prices to continue to rise

CoinGlass data shows that the open interest (OI) of Bitcoin Cash has increased by 7.85% in the past 24 hours, reaching $471.99 million. A surge in OI refers to increased capital inflow into the derivatives market due to excessive buying activity.

Due to the bullish options buying volume exceeding the short buying volume, the weighted financing rate has turned positive, reaching 0.0014%, which further enhances the credibility of the bullish outlook. When the financing rate is positive, long positions will bear the risk to offset the imbalance in spot and swap trading caused by the increase in futures buying volume.

(Source: Coinglass)

BCH Technical Analysis: Price is About to Break Through the Ascending Channel

FXStreet analyst Vishal Dixit stated that BCH has risen for the second consecutive day, up 2% as of Thursday's press time. BCH is approaching the year-to-date high of $505, nearing the ascending trend line formed by the peaks on May 10, May 23, and June 19.

Connecting the low points of BCH's fluctuations on April 16, May 5, May 30, and June 22 forms a parallel support trend line, thereby creating an ascending channel pattern. Typically, this pattern indicates the continuation of a bullish trend.

The intraday rise of BCH has exceeded the 61.8% Fibonacci retracement level of 490 USD, which is derived from the 52-week high of 640 USD down to the low of 249 USD so far this year. If the closing price breaks above the trend line, it is expected to continue the rebound momentum, extending towards the 78.6% Fibonacci retracement level of 556 USD.

Due to the weekly MVRV data indicating room for growth, investors may see it continue to the 52-week high.

The Moving Average Convergence Divergence (MACD) indicator avoids crossing below its signal line, indicating that bullish momentum is recovering.

The Relative Strength Index (RSI) is 64, indicating an upward tendency as it remains above the midline and shows early signs of reversal.

If BCH fails to close above the 61.8% Fibonacci level of $490, it may retest the lower boundary line of the ascending channel at $450.

(Source: FXStreet)