Bitcoin Cash (BCH) breaks through important resistance – Could the momentum push the price up to 719 USD?

Bitcoin Cash (BCH) is showing significant strength by maintaining the price zone around 590 USD at the beginning of the week, just after establishing a new yearly peak above 600 USD. This growth momentum is not only supported by a positive technical trend but is also reinforced by derivative market data: the number of open contracts (OI) has climbed to its highest level since April 2024, reflecting increasing investor expectations for an upcoming breakout. With technical signals supporting the uptrend, BCH is likely to target the 640 USD mark in the short term.

Derive data and on-chain reinforce the bullish trend of BCH

According to data from CoinGlass, the OI of Bitcoin Cash on derivative exchanges has surged from 432.04 million USD on Thursday to 655.31 million USD on Monday – the highest level since April 10, 2024. The increase in OI indicates that new capital is flowing into the market, reflecting the opening of new long positions and could become a driving force behind the current price increase of BCH.

BCH OI chart | Source: CoinglassAdditionally, data from CryptoQuant also shows that buying pressure is significantly increasing. The Taker Cumulative Volume Delta (CVD) of BCH – measuring the cumulative difference between buying and selling volume over 90 days – has remained positive and has been steadily increasing since early May. When the 90-day CVD is in a positive and rising state, this typically means that buyers are in control, laying the foundation for a more sustainable price uptrend.

CVD chart of BCH | Source: CryptoQuant## BCH price prediction: Continuing to break out after reaching a yearly peak above 600 USD

BCH has surpassed the important resistance level at 542.5 USD on Friday and maintained its upward momentum, closing above the resistance trendline of the ascending channel on Sunday, setting a new yearly high at 608.2 USD. As of the time of writing on Monday, BCH is consolidating around 584 USD, indicating that buying pressure remains strong.

If the upward trend continues, BCH may extend its rise and test the 640 USD mark - a potential high on December 6th. A solid close above this zone will open up opportunities to aim for a higher target at 719.5 USD - the peak set on April 5, 2024.

Daily chart BCH/USDT | Source: TradingViewTechnical indicators reinforce bullish outlook: RSI on the daily timeframe is currently at 71, reflecting strong upward momentum despite being in overbought zone while MACD just formed a bullish crossover on Friday, signaling a buy and supporting expectations for a breakout in short term.

Conversely, in the case of a correction, BCH may return to test the important support zone at 542.50 USD before determining the next direction.

Taylor