BCH Rallies as Bitcoin Fills CME Gap in Bearish Channel
Bitcoin Cash has rallied 27% over six weeks, diverging from Bitcoin’s mild decline and cementing BCH as an altcoin haven. On the weekly chart, Bitcoin Cash trades within a $272–$624 range, respecting the $448 midpoint as dynamic support and resistance. A bullish break above $420, confirmed by rising on-balance volume (OBV) and RSI crossing above 50, has propelled recent gains to $530, and rising open interest suggests a push toward the $640 high. Meanwhile, Bitcoin trades in a well-defined descending channel since its May 22 $112,000 peak, with each lower high around $110,000 triggering ~10% pullbacks that have become increasingly shallow. During the latest dip, Bitcoin filled a CME gap near $106,000, dipping to $105,000 before rebounding. On-chain data from Glassnode shows BTC remains above its one-month realized price, with short-term holders still profitable—a sign of resilient market momentum, though continued profit-taking could delay a breakout to new highs.
Bullish
Technical indicators for Bitcoin Cash—namely the break above $420 backed by rising OBV and RSI—signal sustained bullish momentum, while rising open interest and recent tests of $530 point toward potential upside toward $640. For Bitcoin, filling the CME gap near $106,000 and maintaining price above the one-month realized level underscore market resilience, yet the prevailing descending channel suggests near-term gains may be capped by profit-taking. Overall, the combined bullish signals for BCH and supportive on-chain data for BTC favor positive price action, with Bitcoin Cash poised for further strength and Bitcoin showing durable but tempered momentum.