BCH Facing a Turning Point: Upward Drive Meets Key Resistance

Bitcoin Cash (BCH) appears ready for a potential breakout, as both its price movements and derivatives market trends indicate increasing bullish sentiment. As of Thursday, BCH was trading near $560, consolidating just below a significant resistance at $565.1. Technical signals and futures market trends are pointing toward a possible upward move, according to an

. While on-chain indicators remain neutral, derivatives traders are showing a stronger inclination toward gains, spurred by heightened whale activity and advantageous funding rates, the FXStreet report continued.

The futures market has become a crucial indicator of positive sentiment. CryptoQuant’s research describes the outlook as “mildly bullish,” noting that although the spot market lacks clear direction, futures trading is seeing increased involvement from large investors—often a sign that a price surge could follow, as highlighted by FXStreet. Coinglass’s OI-Weighted Funding Rate also supports this view. This metric, which tracks the net expense of holding long versus short positions in perpetual futures, turned positive at 0.0007% on Thursday. Historically, such a shift has been associated with sharp upward moves in BCH, as long holders start paying shorts to keep their positions, FXStreet observed.

Sentiment in the derivatives market is also leaning bullish. On Thursday, Coinglass’s long-to-short ratio for BCH hit 1.14, approaching its highest point in over a month. A ratio above 1 means more traders are expecting prices to rise, indicating a greater willingness to take risks, according to FXStreet. This fits with the broader market picture:

has gained 1% over the last 24 hours, challenging a downward trendline that stretches from October’s high to September’s peak. This move, driven by a 45.8% jump in trading volume above the 30-day average, points to increased accumulation even as BCH faces resistance at the $570-571 range, as noted by .

Technical analysis also supports the bullish scenario. If BCH closes the day above $565.1, it would confirm a breakout and could push the price toward the September 18 high of $651. The Relative Strength Index (RSI) is currently at 59, above the neutral 50 mark, and the Moving Average Convergence Divergence (MACD) showed a bullish crossover last week. The expanding green bars on the MACD histogram, which are above the zero line, further highlight strengthening upward momentum, according to FXStreet.

Nonetheless, there are still risks. Should BCH fail to hold above $565.1, it may revisit the 50-day Exponential Moving Average (EMA) at $542.3, an important support level. The recent price swings—trading within a $19.75 (3.5%) range—underscore the ongoing battle between buyers and sellers. While higher trading volume suggests growing confidence, a lasting breakout will likely depend on broader market strength or renewed buying interest, as Yahoo Finance pointed out.

At present, traders are keeping a close eye on the $565.1 mark, with derivatives and on-chain data suggesting cautious optimism. As the market weighs technical challenges against rising speculative activity, the next few days could be crucial in determining whether BCH’s rally will be sustained.