Bitcoin Cash (BCH) has staged a sharp rally, jumping more than 5% in the past 24 hours and outperforming both Bitcoin (BTC) and the broader crypto market. This recent surge comes amid a notable technical breakout, drawing trader attention despite weak on-chain fundamentals.
BCH Price Rallies Amid Market Weakness
Bitcoin Cash’s price soared from $491.25 to $528 in the early hours of July 1, marking its highest level since mid-December 2024. At press time, BCH was trading around $518.27, still up over 5% on the day.
The rally is supported by a tripling in trading volume, with over 120,000 BCH changing hands, indicating strong buyer interest and heightened market participation. This kind of volume-driven move often signals that traders are positioning for a more sustained rally.
Golden Cross on BCH/BTC Signals Potential Bull Market
One of the most important developments fueling this rally is the golden cross pattern on the BCH/BTC trading pair. According to TradingView data, the 50-day simple moving average (SMA) has crossed above the 200-day SMA, a classic bullish signal that often precedes extended uptrends.
The BCH/BTC pair is now up nearly 20% in four weeks, recently touching a six-month high of 0.0049 BTC. This crossover suggests short-term momentum is overtaking the longer-term trend, a condition that may spark a broader bull phase for BCH.
Caution: Fundamentals Remain Weak
Despite the price optimism, on-chain data reveals concerning trends. According to recent analytics, Bitcoin Cash’s daily active addresses have hit six-year lows, indicating a severe demand deficit. This implies that the rally may be speculation-driven, rather than reflecting increased network usage or adoption.
In essence, while technical traders may see further upside, long-term investors should be cautious until fundamental metrics recover.
Short-Term Bullish, Long-Term Uncertain
Bitcoin Cash is currently enjoying a technically strong rally, fueled by volume surges and a bullish golden cross on its BTC pair. However, underlying network activity remains weak, suggesting that this move may be short-lived without broader adoption or utility gains.
If BCH can hold above key support levels and reclaim $527 resistance, it could continue its bullish trajectory in the coming weeks. Traders should watch volume trends and BTC correlations closely to assess the sustainability of this breakout.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.