BCH tops gainers after 20% rally, analysts expect more upside

While analysts pointed out that bullish chart patterns pointed to further gains, BCH rose over 20% on November 20, leading the top 100 cryptocurrencies.

Bitcoin Cash’s (BCH) rally extended its biweekly gains to over 41%, with the altcoin trading at a 7-month high of $529 at the time of writing. The price increase of the crypto asset was accompanied by an increase in daily trading volume, which doubled compared to the previous day and hovered around $1.48 billion.

Despite the recent price increase, the token remains 86% below its all-time high of $3,785.8 reached on December 20, 2017.

Created in 2017 as a hard fork of Bitcoin to address the flagship crypto asset’s scalability challenges, Bitcoin Cash has historically followed in the footsteps of its predecessor.

The key difference between the two assets is the block size; Bitcoin Cash supports blocks of up to 32 MB, which is significantly larger than Bitcoin’s 1 MB limit. This larger block size allows Bitcoin Cash to process a larger number of transactions within the same time frame.

BCH’s latest rally coincided with Bitcoin gaining over 4.5% in the last 24 hours, reaching an all-time high of $97,500 before returning to $97,093 at the time of writing.

The crypto community’s excitement surrounding the crypto king potentially breaking the $100k mark in the coming days has further fueled positive sentiment towards Bitcoin Cash, leading to a $178 million increase in market cap in the last 24 hours.

Meanwhile, interest in Bitcoin has increased following President Donald Trump’s announcement of major initiatives involving digital assets, including his proposal for a national Bitcoin reserve in the United States and his promise to position the United States as the “crypto capital of the planet.”

Periods of intense interest in Bitcoin often spill over into BCH and other crypto assets closely related to Bitcoin; This is known as the “Bitcoin effect”. In particular, Bitcoin SV (BSV), another hard fork of Bitcoin, also increased by 12% in the past day.

Many market participants view BCH and BSV as cheaper alternatives to Bitcoin, offering access to a cryptocurrency committed to the original vision of a decentralized peer-to-peer electronic cash system.

Analysts predict big targets

Data from CoinGlass shows that open interest in BCH futures increased by 49% in the past day, reaching $377 million at the time of writing. The increase in open interest indicates increased investor activity and capital flows into Bitcoin Cash, resulting in price increases for the asset.

Community sentiment on BCH is also bullish, with 97% of 40,516 traders on CoinMarketCap expecting short-term price increases.

Similarly, sentiment on X has also turned positive, with many analysts and traders predicting strong price targets for the altcoin.

Pseudonymous analyst CW noted that BCH bulls are currently trying to overcome the $530 selling pressure. He predicted that once the altcoin breaks this level, it will quickly rise to $640 and beyond, provided the trend remains strong.

In a previous X post, the analyst noted that BCH was close to completing a multi-month cup and handle formation; If this pattern is confirmed, it is generally considered a bullish signal in the long term.

Another analyst using the pseudonym XForceGlobal observed that BCH has been accumulating for over 357 weeks and forming higher lows. He shared a BCH chart showing the formation of a massive triangle formation; A break above this usually leads to huge gains for altcoins in technical analysis.

Meanwhile, analyst Javon Marks has set a long-term target of $3745, citing significant bullish patterns highlighted on the monthly chart, suggesting that BCH could rally over 600% from current levels.