Bitcoin Cash (BCH) Bulls Show Up Strong, Earning Its Place in the List of the Top Gainers

Bitcoin Cash (BCH) bulls showed up strong in the last 24 hours, earning its place in the list of the top gainers. The cryptocurrency which was previously overshadowed by its more popular counterparts rallied by over 20%.

Bitcoin Cash (BCH) bulls showed up strong in the last 24 hours, earning its place in the list of the top gainers. The cryptocurrency which was previously overshadowed by its more popular counterparts rallied by over 20%.

BCH has been on an overall bearish trend since the second week of December, with a clear resistance line forming on the way down. Meanwhile, its bottom range in February also aligned with its August 2024 low, forming clear support.

Demand has been building up after retesting support at the end of February, BCH up for some recovery in the first week of March. It has so far bounced back by over 44% from its lowest price in February. Most of those gains occurred in the last 24 hours, during which the bulls rallied by about 24%.

The bullish momentum managed to break through Bitcoin Cash’s 3-month descending resistance, indicating a potential trend reversal.

BCH demand makes a splash in both the derivatives and spot segments

Bitcoin cash’s rally this week was backed by a sizable surge spot and derivatives activity. Derivatives volume surged by over 94% and open interest was up 84% in the last 24 hours.

Spot segment activity pivoted from negative to positive in the last week of February and has since then been ticking upwards. For context, spot inflows in the last 24 hours were more than double the figure recorded on 28 February.

The spot and derivatives segment activity was also characterized by a noteworthy uptick in whale activity. For context, whale flows kicked off the week with a clear surge in activity.

Whale inflows climbed to 153,380 BCH as of 3 March. Meanwhile, whale outflows on the same day peaked at 50,870 BCH which was roughly a third of the inflows. In other words, whales contributed to net positive flows into Bitcoin Cash, thus adding to the demand build-up.

Bitcoin Cash short sellers get the sharp end of the stick

Although price broke through resistance in the last 24 hours, it previously retested the same resistance line on 3 March, followed by some sell pressure. This may have created more bearish expectations.

BCH price action demonstrated a bit of a struggle to break above the same descending resistance on Monday and Tuesday. As a consequence, short sellers anticipated more downside. This was evident by the surge in negative funding rates to the highest level observed in the last 3 months.

BCH had $3.12 million worth of liquidations in the last 24 hours. Majority of them were short positions whose liquidations amounted to $2.66 million.

The liquidations may have forced investors to buy more to cover their losses. But can Bitcoin Cash sustain the bullish momentum or will this rally be short-lived just as was the case with some top coins earlier in the week? Well, it will be quite interesting to see how things turn out especially with key market events coming up.